Detailed FX Market Outlook and Analysis

EUR/GBP Daily Analysis 05-MAY-2023

EUR/GBP Daily Analysis

Currently, the intraday bias for EUR/GBP is on the downside. A strong break of the 0.8717 level will confirm that the choppy decline from 0.8911 has resumed. This could lead to a further drop to the 100% projection level of 0.8977 to 0.8717 from 0.8874, which is at 0.8614. On the upside, if the minor resistance level of 0.8766 is surpassed, the intraday bias will become neutral.

In the bigger picture, the outlook is mixed, but the price actions from the 2022 high of 0.9267 are part of a long-term range pattern from the 2020 high of 0.9499. As long as the support level of 0.8720 remains intact, the rise from 0.8545 is likely to continue towards 0.8977. However, if there is a firm break of 0.8720, it may indicate that the rebound has completed and suggest a deeper fall through this support level.

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