EURGBP lost its shine after a slight dovish rate cut by the ECB. Intraday bias remains bearish as long as resistance 0.8380 holds. It hit a low of 0.82950 yesterday and is currently trading around 0.8316.
The European Central Bank (ECB) cut interest rates by 0.25% to address high inflation, with President Christine Lagarde signaling a different approach than the U.S. Federal Reserve. In contrast, the Bank of England (BoE) is more cautious and hasn't committed to rate cuts yet due to ongoing economic uncertainties. This difference in policies may weaken the euro compared to the pound and could cause more fluctuations in currency markets as investors react to these changes.
Technicals-
The pair is trading below 34- and 55 EMA in the 4-hour chart.
Any sustained break below 0.83200 confirms a bearish continuation. A dip to 0.8300/0.8280/0.8235 is possible. The near-term resistance is around 0.83500. A jump above targets 0.83805/0.8400/0.8435 is possible. Bearish invalidation is only above 0.84350.
Indicator (4-hour chart)
CCI (50)- Bearish
Average directional movement Index - Bearish
It is good to sell on rallies around 0.8378-80 with SL around 0.8435 for a TP of 0.8285.
