EURGBP showed a minor pullback on the weak Pound sterling. It hits a multi-year low on weak Pound sterling. Intraday bias remains bearish as long as resistance 0.8365 holds. It hit a high of 0.83495 at the time of writing and is currently trading around 0.833354.
On November 15, 2024, the UK released preliminary GDP data for the third quarter, showing a small increase of 0.1%, the lowest growth rate in three quarters. Year-on-year growth was reported at 0.7%, below the expected 1%. In October, GDP is estimated to have grown by 0.2%. The services sector contributed modestly, while industrial production rose by 0.5%, and manufacturing output increased by 1.1%. These lower GDP figures may impact market sentiment and influence future monetary policy decisions by the Bank of England amid ongoing economic challenges.
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 0.8260, it will confirm an intraday bearish trend. A drop to 0.8235 or 0.8200 is likely.
- Near-Term Resistance: Current resistance is around 0.8360. If it breaks above, we could see movement toward 0.83350/0.0.8380/0.845. 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.
