FxWirePro- EURGBP Trade idea

 The pair showed a minor pullback after a massive sell-off. Intraday bias remains bullish as long as support 0.8220 holds. It hit an intraday high of  0.83114 and is currently trading around 0.83110.

The Eurozone Services PMI for December was revised slightly higher to 48.8, up from an initial estimate of 48.7, but it still indicates contraction as it is below the neutral mark of 50. This figure shows a decline from 51.6 in November, marking the first contraction in the services sector since January 2024. Despite the slight improvement, the services sector faces challenges like weak demand and economic uncertainties. Overall, the economic environment remains tough, with concerns about inflation and lower consumer spending affecting both the services and manufacturing sectors. While the revision offers some hope, it still highlights ongoing issues that need to be addressed.

Technical Analysis

The pair is currently trading above the 34- and 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 0.8325. Any violation above will push towards 0.8340/0.8360/0.8380/0.845/0.8500. 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 0.8285-88, with a stop loss set at 0.8220 and a target price of 0.8480.