ECB-BoE Policy Divergence Drags EURGBP trades weak for the third consecutive week

EURGBP trades weak for the 3rd consecutive week on policy divergence between the ECB and the BOE. As long as resistance at 0.8500 holds, intraday bias is bearish. Currently trading at 0.84534, it reached an intraday low of 0.84434.

Technical Analysis

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

Bearish Trend Confirmation: Any break below 0.8435 confirms an intraday bearish trend. A drop to 0.8400/0.8365 is likely.

Near-Term Resistance: The near -term resistance is around 0.8500. Any violation above will take the pair to 0.8550/0.8580/0.8660/0.8690/0.8725.

Indicator Analysis (4-hour chart)

CCI (50): Bearish

Average Directional Movement Index:  Neutral

Trading Recommendation

It  is good to sell on rallies around  0.8478-80 with SL around 0.8535 for a TP of 0.83650.