EURGBP showed a minor pullback due to short covering. It hit a high of 0.84326 and is currently trading around 0.84247.
The policy divergence between the ECB and BOE puts pressure on the pair at higher levels.
Technicals-
The pair trades below 34- and 55 EMA in the 4-hour chart.
The near-term resistance is around 0.8435, a breach above targets 0.8450/0.84610. The immediate support is at 0.8420, any violation below will drag the pair to 0.8400/0.83830 (Jul 17th, 2024). Any close below 0.83830 confirms that a temporary top formed around 0.8625, a major downtrend resumption.
Indicator (4-hour chart)
CCI (14)- Bearish
CCI (50)- Bearish
Average directional movement Index - bearish
It is good to sell on rallies around 0.8435 with SL around 0.8458 for TP of 0.83830.
