FxWirePro- EURGBP Trade Idea

 The pair gained momentum after weak UK jobs data. Intraday bias remains bullish as long as support 0.8380 holds. It hit an intraday high of 0.84731 and is currently trading around 0.84516.

In November 2024, the UK labor market reported several significant trends. The unemployment rate remained steady at 4.3%, indicating that the labor market is still stable. However, more people were reported to be working, at 35,000, which exceeded the forecast of 33,000 but was very much lower than the 173,000 expansion in the earlier period. Average hourly earnings for a standard week rose 5.6%, as the consensus had predicted, and earnings before bonuses increased 5.6%. But payrolls fell by 47,000 in December; that is a significant decline, far larger than the previous month's decline. Long-term job security aside, though employment is growing and wages are increasing, recent drops in payrolls are a problem.

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 0.8470. 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 0.8525.