EURGBP pared some of its gains on the weak Euro. Intraday bias remains bearish as long as resistance 0.8340 holds. It hit a low of 0.83048 at the time of writing and is currently trading around 0.83170.
Today, ECB President Christine Lagarde discussed the Eurozone's monetary policy, stating that the ECB will adjust its strategies based on new economic data to maintain inflation around the 2% target. Meanwhile, ECB Governing Council member Martins Kazaks called for lowering interest rates, believing that inflation is almost under control and that cuts are needed to support the struggling economy. Both officials highlighted the importance of monitoring economic reports to guide future decisions.
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 0.82600, it will confirm an intraday bearish trend. A drop to 0.8235 or 0.8200 is likely.
Near-Term Resistance: Current resistance is around 0.8320. If it breaks above, we could see movement toward 0.8340/0.8360/0.8380/0.845/0.8500. 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 0.8300, with a stop loss set at 0.8340 and a target price of 0.8200.
