FxWirePro- EURGBP Trade Idea

FxWirePro- EURGBP Trade Idea

 The pair gained slightly after the hawkish rate cut by the BOE.  Intraday bias remains bullish as long as support 0.8290 holds. It hit an intraday high of 0.83777 and is currently trading around 0.83656.

Governor Andrew Bailey said that the inflation decline would probably result in more interest rate cuts. However, details of the cuts will be seen at each meeting. Markets anticipate further rate cuts in 2025.

U.S. President Donald Trump said he might apply the same tactic in the European Union, next to Mexico, Canada, and China. According to him, the EU has exploited the U.S. for years and imports few American cars and farm products. The EU, in reaction, said it would "react forcefully" if the tariffs were to be implemented. Automakers such as Volkswagen from Europe are afraid of the import duty that will be charged, hence hurting their sales. Trump's optimism is that this will spur the improvement of the U.S. economy, protect jobs, and raise tax revenue.

Technical Analysis

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

• Bearish Trend Confirmation: Any break below 0.8290 confirms an intraday bearish trend. A drop to  0.8260/0.8220/0.8190 is likely.
   
• Near-Term Resistance: Current resistance is around 0.8380. 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)

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

Trading Recommendation

It is good to buy on dips around 0.8340  with a stop loss around 0.8290 for a target price of 0.8470.