FxWirePro- EURGBP Trade Idea
EURGBP pared most of its gains on the weak Euro. Intraday bias remains bearish as long as resistance 0.8380 holds. It hit a low of 0.83272 at the time of writing and is currently trading around 0.83350.
The UK Consumer Price Index (CPI) data for October 2024 has been released, showing notable inflation trends:
Headline CPI: Increased to 2.3% year-over-year, up from 1.7% in September.
Core CPI: Rose to 3.3% year-over-year, compared to 3.1% in September.
These increases indicate ongoing inflation pressures above the Bank of England’s (BoE) target of 2.0%. This could affect the BoE's decisions on monetary policy, particularly regarding future interest rate cuts.
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 0.8320, it will confirm an intraday bearish trend. A drop to 0.8260/0.8235 or 0.8200 is likely.
Near-Term Resistance: Current resistance is around 0.8380. If it breaks above, we could see movement toward 0.845/0.8500. 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 sell on rallies around 0.8378-80, with a stop loss set at 0.8365 and a target price of 0.8235.
