FxWirePro- EURGBP Trade Idea

 The pair is consolidating in a narrow range between 0.83219 and 0.82640 for the past ten days. Intraday bias remains bullish as long as support 0.8220 holds. It hit a low of 0.82805 and is currently trading around 0.82875.

Eurozone's Core Consumer Price Index was at 2.7% in December 2024, which was the same as last month. The overall inflation rate was 2.4%, which was due to energy prices. Services went up by 4.0%. In Germany, retail sales fell by 0.6% in November against expectations of a 0.5% rise. The fall was the second consecutive monthly decline, with sales down 1.5% in October. However, sales were still up 1% compared to November last year. Sales fell despite expectations that the holiday season would bring increased activity, and this was an indication of a problem in consumer spending.

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.