EUR/GBP Breaks Higher: Bulls Eye 0.8660 as Support at 0.8480 Holds

EUR/GBP Breaks Higher: Bulls Eye 0.8660 as Support at 0.8480 Holds

EURGBP trades higher on policy divergence between the ECB and BOE. Intraday bias remains bullish as long as support 0.8480 holds. It hits an  intraday high of 0.85872 and is currently trading around 0.85852.

While the Headline CPI Flash Estimate increased marginally to 2. 0% from 1. 9% year-over-year, the Eurozone's Core CPI Flash Estimate for June 2025 stayed constant at 2. 3%, unchanged from May. These findings indicate that core inflation is steady and headline inflation has crept up to meet the 2% European Central Bank objective, therefore implying continued price stability within the euro zone. 

Markets eye BOE Bailey speech for further direction.

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 0.8615. Any violation above will take the pair to 0.8660/0.8765/0.8800.

Indicator Analysis (4-hour chart)

CCI (50): Bullish

Average Directional Movement Index:  Neutral

Trading Recommendation

It is good to buy on dips around 0.8550 with SL around 0.8500  for a TP of 0.8660/0.8700.

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