FxWirePro- EURGBP Trade Idea

 The pair lost its shine on board-based Euro weakness. Intraday bias remains bearish as long as resistance 0.8500 holds. It hit a low of 0.82970 and is currently trading around 0.83132.

The Core CPI Flash Estimate for the Eurozone in January 2025 was 2.7% year-on-year, unchanged from December, and revealed persistent inflation pressures mainly due to rising energy prices. The general rate of inflation rose to 2.5%, a little above expectations. Services (+3.9%), food, alcohol, and tobacco (+2.3%), energy (+1.8%), and non-energy industrial goods (+0.5%) were the significant contributors to inflation. This data proves challenging for the European Central Bank as it determines the need to change monetary policies in response to inflation that's running above 2%. What's happening, at this juncture, raises questions concerning the possibility of an interest rate change given local factors and global happenings.

Technical Analysis

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

• Bearish Trend Confirmation: Any break below 0.8300 confirms an intraday bearish trend. A drop to  0.8260/0.8220/0.8190 is likely.
   
• Near-Term Resistance: Current resistance is around 0.83850. Any violation above will push towards 0.8400/0.8450/0.8470/0.8500/0.8580. The bearish outlook would be invalidated only if the price goes above 0.8500.

Indicator Analysis (4-hour chart)

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

Trading Recommendation

It is good to sell on rallies around 0.8340, with a stop loss around 0.8380 for a target price of 0.82245.