EURGBP declined sharply due to the weak Pound sterling. Intraday bias remains bearish as long as resistance 0.8380 holds. It hit a low of 0.83254 at the time of writing and is currently trading around 0.83280
The latest PMI® data showed that growth slowed down significantly in the UK’s construction sector after reaching a nearly two-and-a-half-year high in September. The headline S&P Global UK Construction Purchasing Managers’ Index™ (PMI®), which measures changes in total industry activity, was at 54.3 in October, down from 57.2 in September. However, the index stayed above the important 50.0 mark for the eighth month in a row. The latest number was also much higher than the average for the first half of 2024 (51.4) and indicated strong growth in the construction industry.
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 0.8320, it will confirm an intraday bearish trend. A drop to 0.8280 or 0.8235 is likely.
- Near-Term Resistance: Current resistance is around 0.83650. If it breaks above, we could see movement toward 0.8380/0.8450/ 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 0.83780, with a stop loss set at 0.8350 and a target price of 0.8500.
