The pair is trading weak for the second consecutive week due to policy divergence between the ECB and BOE. Intraday bias remains bearish as long as resistance 0.8380 holds. It hit a low of 0.82400 and is currently trading around 0.82581.
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 0.8240 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 0.8280 with a stop loss around 0.8320 for a target price of 0.8220.
