EURGBP showed a minor pullback after the UK CPI data. Intraday bias remains bearish as long as resistance 0.8380 holds. It hit a high of 0.82569 and is currently trading around 0.82697.
The UK Consumer Prices Index (CPI) for November 2024 showed a headline inflation rate of 2.6%, an increase from 2.3% in October. This marks the second consecutive month of rising inflation, moving further away from the Bank of England's target of 2%. Core inflation, excluding food and energy prices, also rose to 3.8% from 3.3%. The increase is primarily due to higher costs in housing, electricity, gas, and services like restaurants and hotels. This inflation data may influence the Bank of England's upcoming decisions on interest rates.
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 0.8258, it will confirm an intraday bearish trend. A drop to 0.8230/0.8190/ 0.8150 is likely.
- Near-Term Resistance: Current resistance is around 0.8280. If it breaks above, we could see movement toward 0.8300/0.8320/0.8340/0.8360/0.8380/0.845/0.8500. 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: Neutral
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 0.8190.
