FxWirePro- EURGBP Trade Idea

 The pair showed a minor sell-off after UK GDP. Intraday bias remains bullish as long as support 0.8380 holds. It hit a high of 0.84650 and is currently trading around 0.84246.

The latest report on UK GDP for November 2024 reports a growth of 0.1%, less than the estimated growth of 0.2%. It follows a reduction of 0.1% in October and indicates that recovery is slow. The increase came mainly from a modest increase in the output of services. The economy has experienced contractions in the past months, leading to a lack of confidence about its performance. Analysts are tracking these numbers because they may eventually determine the moves the Bank of England will have to make about interest rates amidst continuing economic adversity.

Technical Analysis

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

1. Bearish Trend Confirmation: Any break below 0.8380 confirms an intraday bearish trend. A drop to  0.8340/0.8300/0.8260/0.8220/0.8190 is likely.
2. Near-Term Resistance: Current resistance is around 0.84500. Any violation above will push towards 0.8500/0.8580. The bearish outlook would be invalidated only if the price goes above 0.8500.

Indicator Analysis (4-hour chart)

1. CCI (50): Bullish
2. Average Directional Movement Index: Neutral

Trading Recommendation

It is good to buy on dips around 0.8380, with a stop loss around 0.8340 for a target price of 0.8500.