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EUR/GBP Forex Signal – April 21, 2025
Market Overview
The EUR/GBP currency pair is currently showing signs of bullish continuation, trading around 0.8600. This movement reflects growing confidence in the Euro amid stronger-than-expected economic data from the Eurozone, while the British Pound faces pressure from mixed domestic data and political uncertainty.
This signal is built on macro divergence, improving sentiment around the Euro, and clear technical structures supporting a long entry.
Trade Setup Summary
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Currency Pair: EUR/GBP
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Signal Type: Buy
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Entry Price: 0.8600
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Take Profit: 0.8700 (Primary Target), 0.8800 (Extended Target)
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Stop Loss: 0.8530
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Time Frame: 1–3 days
Fundamental Analysis
Eurozone Strength
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Germany and France reported better-than-expected PMI results.
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Eurozone industrial production is rebounding.
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ECB expressed optimism about economic stabilization.
UK Economic Weakness
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Inflation in the UK dropped to 3.1%, opening the door for a BoE rate cut.
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Retail sales dropped for the second month.
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Political uncertainty is weighing heavily on GBP.
Central Bank Divergence
The ECB is more stable in its guidance compared to a pressured Bank of England. This divergence supports buying the Euro against the Pound.
Technical Analysis
Moving Averages
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EUR/GBP is above the 50- and 100-period SMAs on both 4H and daily charts.
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Golden cross on the 4H chart confirms trend continuation.
RSI
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RSI is at 61 → strong momentum with room to move higher.
MACD
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MACD shows bullish crossover and rising histogram bars.
Fibonacci Levels
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The 0.8600 zone is aligned with the 50% fib retracement.
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Next fib target: 0.8700 and 0.8800.
Price Action
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Forming a bullish ascending triangle
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Breakout confirmation expected above 0.8620.
Entry Strategy – April 21, 2025
📌 Buy EUR/GBP at: 0.8600
🎯 Take Profit 1: 0.8700
🎯 Take Profit 2: 0.8800
🛑 Stop Loss: 0.8530
Wait for a 1H candle to close above 0.8610. Use a trailing stop once price crosses 0.8680.
Risk Management Tips
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Stick to risk limit: max 2% per trade.
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Monitor UK CPI and upcoming ECB speeches.
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Be ready to adjust based on Brexit-related headlines.
Market Sentiment
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COT data shows increasing long exposure to the Euro.
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Retail sentiment is net short → supports potential for short squeeze.
📌 If you’re already trading EUR/USD or GBP/USD, this pair adds low-volatility Euro exposure.
External Resources
Conclusion
EUR/GBP offers a clear long setup based on macro divergence and technical momentum. With entry at 0.8600, traders can target 0.8700 and 0.8800 in the coming sessions.
This signal aligns well with Euro strength across the board, especially amid GBP weakness. A well-calculated position here complements broader FX strategies.
