Daily Forex Analysis – EUR/GBP
The EUR/GBP pair recently experienced a sharp pullback after initially climbing to 0.8756, leading to a neutral stance in its intraday bias. Should there be a further descent, it’s anticipated that the downward movement will find robust support from the 55-day Exponential Moving Average (EMA), currently positioned at 0.8656. A decisive surge past the 0.8756 mark would signify a continuation of the increase from 0.8495, setting the stage for the pair to aim at the 100% projection of 0.8495 to 0.8708 from 0.8618, targeted at 0.8831. Nevertheless, a sustained drop below the 55-day EMA would suggest the completion of the rebound from 0.8495, potentially leading to a deeper decline towards the 0.8618 support level.
From a wider viewpoint, recent trends imply that the comprehensive downtrend originating from the 2022 peak of 0.9271 might have concluded with a three-wave decrease to 0.8495. The ascent from 0.8495 is perceived as a new phase within the larger pattern dating back to the 2020 high of 0.9503. As long as the 0.8618 support level remains intact, further upward movement is expected, potentially challenging the 0.8981 resistance and possibly moving higher.
This analysis underscores the EUR/GBP pair’s resilience and suggests an optimistic outlook, buoyed by macroeconomic factors and monetary policies influencing both the Eurozone and the UK. The currency pair’s movements reflect broader market sentiments and economic indicators, making it an interesting subject for traders and investors who should closely monitor these critical support and resistance points for strategic decision-making.
Analysis Summary
The EUR/GBP pair, after sharply retreating from 0.8756, maintains a neutral bias. A breakthrough above 0.8756 could resume the uptrend targeting 0.8831, while a drop below the 55-day EMA at 0.8656 signals a deeper decline. The pair’s broader perspective remains bullish, with 0.8981 as the next key resistance.
Key Bullet Points
- Neutral bias after retreat from 0.8756.
- A break above 0.8756 may target 0.8831.
- Support at 0.8656 is critical to curb deeper falls.
