EURGBP hits multi-year low on weak Pound sterling.Intraday bias remains bearish as long as resistance 0.8365 holds. It hit a low of 0.82691 at the time of writing and is currently trading around 0.82693.
Eurozone Growth Resilience
The Eurozone's GDP grew by 0.4% in the third quarter of 2024, the strongest growth in two years and better than expected. Germany's economy grew by 0.2%, while France's growth increased to 0.4%. Spain continued to do well with 0.8% growth, but Italy saw no growth, and Latvia's economy contracted by -0.4%. European stock markets reacted positively, with the STOXX 600 index rising by 0.9%. However, Germany faced challenges as industrial production and exports fell due to high interest rates and global trade issues. The European Central Bank expects GDP growth to reach around 0.8% in 2024 but warns that trade tensions from Trump's policies could still affect the economy. Overall, the Eurozone shows resilience, though uncertainties remain.
Technical Analysis
The pair is currently trading below the 34- and 55-EMA on the 4-hour chart.
Bearish Trend Confirmation: If the price stays below 0.8280, it will confirm an intraday bearish trend. A drop to 0.8250 or 0.8235 is likely.
Near-Term Resistance: Current resistance is around 0.8305. If it breaks above, we could see movement toward 0.3350/0.8365/0.8380/0.845. The bearish outlook would be invalidated only if the price goes above 0.8500.
Indicator Analysis (4-hour chart)
- CCI (50): Bearish
- Average Directional Movement Index: bearish
Trading Recommendation
It may be wise to sell on rallies around 0.8338-340, with a stop loss set at 0.8365 and a target price of 0.8235.
