EURGBP gained more than 150 pips on the strong Euro. Intraday bias remains bullish as long as support 0.8380 holds. It hit a high of 0.84480 yesterday and is currently trading around 0.84084
The euro saw a strong performance last week, supported by positive Eurozone economic data. In October, inflation fell to 1.7%, the lowest since April 2021, while preliminary GDP growth for Q3 2024 was 0.4%, with mixed results across countries. The unemployment rate remained steady at 6.3%, indicating a robust job market, although the manufacturing sector struggled while services continued to expand.
Technical Analysis
The pair is currently trading above the 34- and 55-EMA on the 4-hour chart.
- Bearish Trend Confirmation: If the price stays below 0.83650, it will confirm an intraday bearish trend. A drop to 0.8320/0.8280 or 0.8235 is likely.
- Near-Term Resistance: Current resistance is around 0.8450. If it breaks above, we could see movement toward 0.8505/0.8540. The bearish outlook would be invalidated only if the price goes above 0.8500.
Indicator Analysis (4-hour chart)
- CCI (50): Bullish
- Average Directional Movement Index: Neutral
Trading Recommendation
It may be wise to buy on dips around around 0.83780, with a stop loss set at 0.8350 and a target price of 0.8500.
