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Daily Forex Analysis – EUR/GBP – 18-July-2023

Daily Forex analysis

EUR/GBP Daily Forex Analysis

Our Daily Forex Analysis of the EUR/GBP pair indicates a slight intraday bias on the upside. The pair’s rebound from 0.8506 is expected to test the resistance at 0.8661. The bullish convergence observed in the 4H and D MACD adds weight to the possibility of a bullish trend reversal should the pair confidently breach 0.8661. Alternatively, if the pair breaks below 0.8506, it would mean a continuation of the overall downward trend from 0.8981.

Taking a broader perspective in our Daily Analysis, the ongoing downward trend from the 2022 high of 0.9271 is recognized as part of the long-term range pattern starting from the 2020 high of 0.9503. This may lead to a further decline towards the 2022 low of 0.8205. However, significant support should emerge from this point to instigate a trend reversal. This scenario is the most favored as long as the 0.8661 resistance level is upheld.

EUR/GBP Daily Analysis Summary

EUR/GBP presents a mild intraday bias on the upside. Should the pair confidently breach 0.8661, a bullish trend reversal could be in the cards. However, a break below 0.8506 may lead to a continuation of the broader downward trend from 0.8981.

Key Points:

  • Slight intraday bias towards the upside in EUR/GBP pair, targeting 0.8661 resistance.
  • A decisive break above 0.8661 could signal a bullish trend reversal.
  • The broader picture indicates a continuation of the downward trend from the 2022 high, with potential for further decline towards 0.8205, assuming 0.8661 resistance holds.

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