Detailed FX Market Outlook and Analysis

EUR/GBP Daily Analysis 07-June-2023

Daily Analysis Forex

EUR/GBP Analysis and Intraday Update

The daily analysis of EUR/GBP suggests a neutral bias, indicating a period of consolidation above the key level of 0.8566. The upside potential for recovery is expected to be limited by the resistance-turned-support level at 0.8660, leading to another potential decline. A breakthrough below 0.8566 would signal a fall resumption from 0.8977, with the next target set at the 161.8% projection level of 0.8977 to 0.8717, calculated from 0.8874 at 0.8457. However, a firm breakthrough of 0.8660 would confirm a short-term bottoming pattern, shifting the bias back to the upside and indicating a stronger rebound.

Zooming out to the bigger picture, the current development suggests that the overall decline from the 2022 high of 0.9267 is still in progress. This decline is part of a long-term range pattern originating from the 2020 high of 0.9499. A deeper fall is anticipated, potentially breaking below the support level at 0.8545. This scenario will remain favored as long as the resistance-turned-support at 0.8717 holds.

EUR/GBP Daily Analysis Summary

The daily analysis for EUR/GBP suggests a neutral bias, with consolidation expected above 0.8566. The upside potential is likely limited, while a breakthrough below 0.8566 would indicate a resumption of the downward movement. In the bigger picture, the overall decline from the 2022 high is expected to continue, with a potential deeper fall toward the support level of 0.8545. Traders and investors should closely monitor price movements and key levels to make well-informed trading decisions.

  • EUR/GBP intraday bias remains neutral for consolidation above 0.8566
  • A break above 0.8660 confirms short-term bottoming, turning bias to the upside
  • A break below 0.8566 resumes falls from 0.8977, targeting 0.8457
  • Fall from the 2022 high suggests ongoing decline within a long-term range pattern
  • Sustained trading above 0.9058 support-turned-resistance confirms potential for medium-term bottoming and bullish trend reversal

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