The EUR/GBP pair currently exhibits a slight bearish inclination, with a focus on the short-term downward movement from a level of 0.8758. This decline is identified as a part of a larger consolidation pattern beginning from 0.8756, with an anticipated target of 0.8652. However, substantial support is expected around this target, which could culminate in the consolidation phase. Conversely, a decisive upward breach surpassing the 0.8756/8 range would reignite the overall upward trend, potentially reaching the 0.8878 resistance mark.
Expanding the scope to a macro view, recent trends suggest that the comprehensive downtrend starting from the 0.9271 peak in 2022 has reached its completion at the downturn to 0.8495. The subsequent rise from 0.8495 is perceived as a new phase within the broader pattern that originated from the 0.9503 high in 2020. A continued upward rally is expected to challenge the 0.8981 resistance level and possibly extend beyond. This bullish scenario is likely to prevail as long as the 0.8618 support level is maintained.
Analysis Summary
The EUR/GBP pair shows a mild downward bias in the short term with a target of 0.8652, within a larger consolidation pattern. The long-term view remains bullish, anticipating a rally towards 0.8981, provided the 0.8618 support holds.
Key Points
- The short-term bearish trend in EUR/GBP targeting 0.8652.
- Long-term bullish outlook with a potential rally to 0.8981.
- Critical support at 0.8618 underpins a bullish scenario.
