EUR/GBP Analysis
EUR/GBP remains confined within a sideways consolidation phase, despite a fleeting dip to 0.8552. The intraday bias maintains a neutral stance at this juncture. In the event of a recovery, any upside potential is expected to be curtailed below the 0.8652 support-turned-resistance level, potentially paving the way for another downturn. A breach below 0.8552 would set the stage for targeting the initial low at 0.8495, and a decisive break there would reignite the broader downtrend.
Taking a broader view, the ongoing developments indicate that the downward trajectory from the 2022 high at 0.9271 is persisting. This descent is construed as the third leg within the pattern originating from the 2020 high at 0.9503. A breach of the 0.8205 level would set the stage for targeting the 100% projection of the decline from 0.9503 to 0.8205, measured from the 2022 high at 0.9271, with the target zone located at 0.7973. In any scenario, the bearish outlook prevails, contingent upon the resistance at 0.8768 remaining unbreached.
Analysis Summary
EUR/GBP maintains a sideways consolidation with a neutral intraday bias despite a brief dip. Potential recovery is limited by the 0.8652 resistance-turned-support, while a breach below 0.8552 may lead to a broader downtrend, targeting 0.8495.
Key Points:
- EUR/GBP is in a sideways consolidation with a neutral intraday bias.
- Upside potential is limited below 0.8652; the downside focuses on breaching 0.8552.
- The broader picture indicates the persistence of the downtrend, with 0.8205 as a critical level.
