FxWirePro- EURGBP Trade Idea

EURGBP  showed a minor pullback after UK GDP data. Intraday bias remains bullish as long as support 0.8220 holds. It hit a low of 0.82776 at the time of writing and is currently trading around 0.82966.

The final GDP figures for the UK in the third quarter of 2024 show a growth rate of 0.0%, down from an earlier estimate of 0.1%. This follows stronger growth of 0.5% in the second quarter. Even with no growth this quarter, the annual growth remains at 1.0%, showing some resilience compared to last year. The services sector grew slightly by 0.1%, and construction grew by 0.8%, but the production sector fell by 0.2%. This data highlights ongoing economic challenges in the UK, which could affect future economic decisions.

Technical Analysis

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

• Bearish Trend Confirmation: If the price stays below 0.8260, it will confirm an intraday bearish trend. A drop to  0.8220/0.8190 is likely.
   
• Near-Term Resistance: Current resistance is around 0.8325. 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): Bullish
• Average Directional Movement Index: Neutral

Trading Recommendation

It may be wise to buy on dips around 0.8280, with a stop loss set at 0.8220 and a target price of 0.8435.