Detailed FX Market Outlook and Analysis

Daily Forex Analysis – EUR/GBP – 20-July-2023

Daily Forex analysis

EUR/GBP Daily Forex Analysis

The Intraday Outlook for the EUR/GBP currency pair at present indicates a bias leaning towards the upside. The latest trends suggest the fall from 0.8981 might have completed a five-wave cycle. A decisive break at the 0.8721 level, a key resistance turned support, would solidify this bullish outlook, potentially setting the stage for a rally toward the 0.8981 resistance level. However, a drop below the minor support level of 0.8623 could complicate the outlook, reverting the intraday bias to neutral.

Our Daily Forex Analysis highlights a longer-term perspective, wherein the downtrend from the 2022 peak of 0.9271 is perceived as part of a broader range pattern originating from the 2020 high of 0.9503. A solid break above the 0.8721 level, previously a support, now a resistance, would suggest the completion of the three-wave decline to 0.8506. A further climb past 0.8981 would prompt a retest of the 0.9271 high. However, should the pair break below 0.8506, it would signal a continuation of the descent toward the 2022 low of 0.8205.

EUR/GBP Daily Analysis Summary

In our Daily Forex Analysis of the EUR/GBP pair, the intraday bias leans bullish, eyeing a solid break above the 0.8721 level. However, a drop below 0.8623 could neutralize this outlook. In a broader context, the pair could potentially revisit its 0.9271 high, but a break below 0.8506 could prompt further decline towards 0.8205.

Key Points

  • The Intraday Analysis for EUR/GBP indicates a bullish bias, pending a firm break above 0.8721.
  • A drop below 0.8623 could neutralize the intraday bias.
  • In the broader view, a revisit to the 0.9271 high could be possible, while a break below 0.8506 may spur a decline to 0.8205.

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