EURGBP declined slightly due to profit booking. Intraday bias remains bullish as long as support 0.8450 holds. It hit an intraday low of 0.84997 and is currently trading around 0.85028.
Weaker economic data in the UK, including slowing growth and a loosening labor market, coupled with falling inflation, have increased the likelihood of further interest rate cuts by the Bank of England, which already reduced its benchmark rate to 4.25% in May 2025 and is now expected by analysts and markets to implement at least two more cuts this year, with the next decision scheduled for June 19, 2025, as global uncertainty and a cautious, data-driven approach continue to influence their actions.
Technical Analysis
The pair is currently trading above 55 and 200- EMA and 365-EMA on the 4-hour chart.
Bearish Trend Confirmation: Any break below 0.8480 confirms an intraday bearish trend. A drop to 0.84425/0.8400/0.8378/0.8340/0.8300 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: Bullish
Trading Recommendation
It is good to buy on dips around 0.8500 with SL around 0.8480 for a TP of 0.8605.
