EURGBP showed a minor pullback after a massive sell-off. Intraday bias remains bearish as long as resistance 0.8650 holds. It hit a low of 0.84613 and is currently trading around 0.85150.
In April 2025, the S&P Global UK Construction PMI rose to 46.6, still in decline for the fourth month in a row, as business uncertainty put projects on hold and cut new orders and employment. Civil engineering suffered the sharpest fall, and residential buildings were relatively robust. Commercial work also fell in the face of economic fears. Despite declining demand and sharp declines in purchasing activity, cost pressures continued because of increasing material and payroll expenses. Business confidence, however, improved, reaching its strongest since December 2024, as a result of optimism over future residential projects.
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 0.8450 confirms an intraday bearish trend. A drop to 0.8378/0.8300 is likely.
Near-Term Resistance: The near-term resistance is around 0.8550. Any violation above will take the pair to 0.8605/ 0.8660/0.8765/0.8800.
Indicator Analysis (4-hour chart)
- CCI (50): Bullish
- Average Directional Movement Index: Neutral
Trading Recommendation
It is good to sell on rallies around 0.8548-55 with SL around 0.86050 for a TP of 0.8380.
