The pair trades slightly weak after mixed UK PMI data. Intraday bias remains bearish as long as resistance 0.8380 holds. It hit an intraday low of 0.82719 and is currently trading around 0.82764.
The British economy in February 2025 is polarized in performance since the manufacturing and services economies followed different directions. The Flash Manufacturing PMI stood at a 14-month low of 46.4, which is testimony to a sudden downturn and poorer than forecasted. On the other hand, the Services PMI was good and rose to 51.1, representing a moderate increase. This differential indicates continued strain in the manufacturing economy, weighed against improvement in services. The composite PMI indicates modest aggregate growth, in line with the offsetting contributions of these sectors
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 0.8260 confirms an intraday bearish trend. A drop to 0.8220/0.8190 is likely.
- Near-Term Resistance: Current resistance is around 0.8300. Any violation above will push towards 0.8340/0.8380/ 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)
- CCI (50): Bearish
- Average Directional Movement Index: Bearish
Trading Recommendation
It is good to sell on rallies around 0.8300 with a stop loss around 0.8340 for a target price of 0.8220.
