EUR/GBP Bulls Eye 0.8765: UK CPI Spurs Dip-Buying Opportunity

EURGBP showed a minor sell-off after UK CPI. Intraday bias remains bullish  as long as support 0.8580 holds. It hits an  intraday high of 0.86950 and is currently trading around 0.86710.

With the Consumer Price Index (CPI) rising to 3. 6% year-on-year—the highest since January 2024—exceeding both May's number and market predictions, UK inflation shot in June 2025. Broad price increases driven by growing housing and transportation expenses helped to drive this inflation. Core measures likewise rose (core CPI at 3. 7% and core CPIH at 4. 3%), stressing sustained, broad inflation; the more thorough CPIH increased 4. 1% yearly. Headline inflation is presently much over the Bank of England's 2% objective, so this unexpected rise has drawn attention to the central bank's approaching interest rate decision.

Technical Analysis

The pair is currently trading above the 55 and 200-EMA and 365-EMA on the 4-hour chart.

Bearish Trend Confirmation: Any break below 0.8580 confirms an intraday bearish trend. A drop to 0.8520/0.8480/0.84425/0.8400/0.8378/0.8340/0.8300 is likely.

Near-Term Resistance:  The near-term resistance is around 0.8700. Any violation above will take the pair to 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 0.8650 with SL around 0.8600  for a TP of 0.8765.

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