FxWirePro- EURGBP Trade Idea

EURGBP  surged sharply after dismal UK GDP data. Intraday bias remains bearish as long as resistance 0.8380 holds. It hit a low of 0.82252   and is currently trading around 0.82920.

The UK's GDP shows a slight growth of 0.1% for October 2024, following a contraction of -0.1% in September 2024. This recent increase comes after a growth of 0.2% in August, indicating some recovery. The September decline was unexpected and was mainly due to lower production and stagnant services. Ongoing challenges like high inflation and low business investment are affecting the economy and may influence future policies and consumer confidence.

Technical Analysis

The pair is currently trading  below the 34- and 55-EMA on the 4-hour chart.

1. Bearish Trend Confirmation: If the price stays below 0.8230, it will confirm an intraday bearish trend. A drop to 0.8190/ 0.8150 is likely.
2. Near-Term Resistance: Current resistance is around 0.8300. If it breaks above, we could see movement toward 0.8320/0.8340/0.8360/0.8380/0.845/0.8500. 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 0.8268-70, with a stop loss set at 0.8320 and a target price of 0.8160.