Detailed FX Market Outlook and Analysis

EUR/GBP Daily Analysis 01-MAR-2023

EUR/GBP Daily Analysis

The EUR/GBP’s intraday bias turned neutral once again as it rebounded from a dip to 0.8753. Further decline is expected, with resistance at 0.8834 remaining intact. A breach of 0.8753 would resume the fall from 0.8977 to support at 0.8720. If this level is broken firmly, it would confirm the completion of the entire rebound from 0.8545, turning the near-term outlook bearish for this support. However, if 0.8834 is breached, it would dampen this bearish view and turn the bias back to the upside for a stronger rebound.

Looking at the bigger picture, the current development suggests that the fall from the 2022 high of 0.9267 is still ongoing. This decline is viewed as a leg within a long-term range pattern from the 2020 high of 0.9499. A break of 0.8545 would target the 100% projection of the move from 0.9267 to 0.8545 from 0.8977 at 0.8255. Conversely, a strong rebound from the current level would extend the rise from 0.8545 through 0.8977 at a later stage.

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