Daily Forex Analysis – EUR/GBP
In today’s Daily Forex Analysis, our focus is on the EUR/GBP pair. The Intraday Outlook for EUR/GBP suggests a bullish tilt, with the price action extending its rise from 0.8493. This ascent is considered the third wave of a larger correction that began at 0.8504. While we may see more upside, the bullish momentum is likely to face resistance around the 0.8669 to 0.8702 zone. Flipping to the downside, a dip below 0.8616 could neutralize the intraday bias, and a fall below 0.8570 could revert the outlook to bearish, aiming for a retest of the 0.8493 low.
For our Daily Analysis, in the macro view, the EUR/GBP downtrend originating from the 2022 high of 0.9269 seems to be part of an expansive range pattern that goes back to a 2020 peak at 0.9501. The decline from 0.8979 is categorized as the third wave of this movement. As long as the 0.8702 resistance stands, additional declines are on the table. A break below 0.8493 would signal a continuation towards the 2022 low of 0.8203. Conversely, a robust break above 0.8702 could indicate a bullish reversal.
Analysis Summary
In this EUR/GBP Daily Forex Analysis, we observe a short-term bullish bias likely capped by the 0.8702 resistance. A failure to hold above 0.8616 could shift the intraday outlook to bearish. From a larger perspective, the pair remains within a long-term range pattern.
Key Points
- Bullish Intraday Analysis for EUR/GBP but capped at 0.8702
- Downside break of 0.8616 could change intraday outlook
- Long-term bearish trend expected to continue unless 0.8702 is breached
