FxWirePro- EURGBP Trade Idea

The pair pared some of its gains despite upbeat German ZEW data. Intraday bias  remains bullish as long as resistance 0.8320 holds. It hits an intraday high of 0.84285 and is currently trading around 0.84176.

In March 2025, Germany's ZEW Economic Sentiment Index was at an all-time high of 51.6 points from January 2023, spurred by positive news on fiscal policies and better developments in the metal and mechanical engineering sectors due to expected benefits of the ECB cut in interest rates. The ZEW Indicator of the Eurozone also improved to 39.8 points, while that of Germany's short-term economic scenario remains negative at -87.6 points.

Technical Analysis

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

• Bearish Trend Confirmation: Any break below 0.8340 confirms an intraday bearish trend. A drop to  0.8320/0.8290/0.8220/0.8190 is likely.
   
• Near-Term Resistance: Current resistance is around 0.8450. Any violation above will push towards 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): Bullish
• Average Directional Movement Index: Bullish

Trading Recommendation

It is good to buy on dips around 0.8380  with a stop loss around 0.8340 for a target price of 0.8500.