EURGBP pared some of its gains on strong pound sterling. Intraday bias remains bearish as long as resistance 0.8380 holds. It hit a low of 0.83048 at the time of writing and is currently trading around 0.83170.
The Euro Area's core inflation rate for November 2024 is estimated at 2.7% year-over-year, matching the previous month's rate and indicating stability above the European Central Bank's (ECB) target of around 2%. Overall inflation rose to 2% in October, influenced by the effects of last year's energy price drops. The steady core inflation may prompt the ECB to discuss changes in interest rates, possibly easing its monetary policy if conditions improve. Analysts are closely monitoring these figures to see how they affect the ECB's future decision-making.
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 0.8300, 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 0.8360. If it breaks above, we could see movement toward 0.8380/0.845/0.8500. The bearish outlook would be invalidated only if the price goes above 0.8500.
Indicator Analysis (4-hour chart)
- CCI (50): Bearish
- Average Directional Movement Index: Bearish
Trading Recommendation
It may be wise to sell on rallies around 0.8350, with a stop loss set at 0.8380 and a target price of 0.8260.
