FxWirePro- EURGBP Trade Idea

 The pair is consolidating in a narrow range between 0.83784 and 0.8290 for the past week. Intraday bias remains bearish as long as resistance 0.8380 holds. It hit an intraday high of 0.83530 and is currently trading around 0.83283

In a speech on February 11, 2025, Bank of England Governor Andrew Bailey warned against reducing financial regulations that were put in place after the global financial crisis. He stated that economic growth and financial stability can go hand in hand, and we should not forget the harm caused by the crisis. He raised concerns about risks in non-bank financial systems and emphasized the need for better ways to assess and intervene in these areas, without always requiring more regulation. His remarks came as the UK government plans to lessen regulations in the financial sector. Lastly, he mentioned that the Bank of England is creating a new liquidity facility to help manage financial stability.

Technical Analysis

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

• Bearish Trend Confirmation: Any break below 0.8290 confirms an intraday bearish trend. A drop to  0.8260/0.8220/0.8190 is likely.
   
• Near-Term Resistance: Current resistance is around 0.8380. Any violation above will push towards 0.8400/0.8450/0.8470/0.8500/0.8580. The bearish outlook would be invalidated only if the price goes above 0.8500.

Indicator Analysis (4-hour chart)

1. CCI (50): Neutral
2. Average Directional Movement Index: Neutral

Trading Recommendation

It is good to buy on dips around 0.8340  with a stop loss around 0.8290 for a target price of 0.8470.