FxWirePro- EURGBP Trade Idea

EURGBP pared some of its gains after weak UK jobs data. hits multi-year low on weak Pound sterling. Intraday bias remains bearish as long as resistance 0.8365 holds. It hit a low of 0.82798 at the time of writing and is currently trading around 0.82810.

UK jobs data-

In October 2024, the number of people in the UK claiming unemployment benefits rose by 26.7 thousand, following a smaller increase of 10.1 thousand in September. This was less than the expected rise of 30.5 thousand for October. The claimant count shows how many people are receiving unemployment help, indicating ongoing difficulties in the job market. The unemployment rate also increased to 4.3% in the three months before September 2024, up from 4.0% in August. This situation points to challenges in the labor market that need careful attention and support.

Technical Analysis

The pair is currently trading below the 34- and 55-EMA on the 4-hour chart.

Bearish Trend Confirmation: If the price stays below 0.8260, it will confirm an intraday bearish trend. A drop to 0.8235 or 0.8200 is likely.

Near-Term Resistance: Current resistance is around 0.8305. If it breaks above, we could see movement toward 0.83350/0.8365/0.8380/0.845. The bearish outlook would be invalidated only if the price goes above 0.8500.

Indicator Analysis (4-hour chart)

• CCI (50): Bearish
• Average Directional Movement Index: bearish

Trading Recommendation

It may be wise to sell on rallies around 0.8338-340, with a stop loss set at 0.8365 and a target price of 0.8235.