FxWirePro- EURGBP Trade Idea

 The pair gained momentum after dismal UK retail sales. Intraday bias remains bullish as long as support 0.8380 holds. It hit an intraday high of 0.84530 and is currently trading around 0.84480.

The decline in UK retail sales was recorded as of January 17, 2025; the sales made in December 2024 were lower. The sales at the end of December 2024 declined 0.3 % after reaching $0.4% in sales in November.

This decline might be because of economic stressors like inflation and the rising cost of living, which make the consumer more cautious in spending money. December being the peak holiday shopping season, such a decline would mean that people are cutting down on unnecessary purchases.

Analysts will observe closely to check if this pattern continues or the sales pick up in the forthcoming months. As the retail industry is a prominent sector of the services industry, its performance for the overall economy is important.

Technical Analysis

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

• Bearish Trend Confirmation: Any break below 0.8380 confirms an intraday bearish trend. A drop to  0.8340/0.8300/0.8260/0.8220/0.8190 is likely.
   
• Near-Term Resistance: Current resistance is around 0.84650. 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)

• CCI (50): Bullish
   
• Average Directional Movement Index: Bullish

Trading Recommendation

It is good to buy on dips around 0.8430, with a stop loss around 0.8380 for a target price of 0.8500.