EURGBP to stage intraday correction lower

EURGBP pair is approaching a critical resistance zone, which might result in a short term pullback for the pair. There is a bearish hidden divergence on the 4 hour chart along with a band to band move. So, there are enough reasons to consider a sell position in the pair moving ahead.

Looking at the hourly chart of the EURGBP pair there are over 20 candles ride, which adds value to our bearish view. If the pair pushes one more time close to the resistance zone at around 0.8300/20 levels and stops, then we can jump into a sell trade. One can also consider entering around current levels if the pair does not attempt to move higher.

Initial target should be around 0.8260 level, and final target could be around 0.8220 level. Stop should be placed above the 4 hour 200 moving average.

Better than Expected US Jobless Claims
Yesterday most of the major currency pairs consolidated inside a range during the NY session. The economic data published in the US were encouraging, as the US initial jobless claims fell to 320K, down from the previously revised reading of 332K. The import price index and export price index data was also on the positive side. This helped to the US dollar not to lose any further ground against the majors. During the Asian session, the inflation data were published, which missed the expectations and ignited a down-move in NZDUSD and AUSDUSD pairs.

US PPI figures and Michigan Consumer Sentiment
Today, in the NY session the US PPI, core PPI and Michigan consumer sentiment data will be released. Any disappointment from the PPI figures might lead more losses in the US dollar. On the other side, better than expected data could help the dollar to recover some ground, especially against the Japanese yen and the Euro. Today is Friday, so I would advise everyone to be careful while trading and not to jump into any sort of risky bet.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, USDJPY, USDCAD and EURCHF.
Get it HERE: Vladimir’s Markets Forecast

Have a great weekend friends. Happy trading!