Daily Forex Analysis – EUR/GBP
The intraday bias for EUR/GBP maintains a modestly bullish stance, with the focus set on retesting the key resistance zone between 0.8700 and 0.8704. A resolute breach of this zone holds the potential for more substantial bullish implications. Conversely, a breach of the 0.8614 level would signal a shift in bias toward the downside, reigniting the descent that initiated from 0.8704.
Looking at the broader perspective, the downtrend that unfolded from the 2022 high of 0.9267 is perceived as a component of the long-term range pattern, which traces its origins back to the 2020 high of 0.9499. A decisive breakthrough of the 0.8700 resistance threshold would suggest that the decline has culminated in a three-wave structure, reaching its low point at 0.8491. Subsequently, the ascent from 0.8491 could signify another leg within this overarching pattern, with price targets set at 0.8977 and beyond. However, failure to breach the 0.8700 level would keep the downtrend intact, potentially leading to a subsequent decline through 0.8491 in due course.
Analysis Summary
EUR/GBP’s intraday analysis aims for the retest of the 0.8700/4 resistance zone, with a decisive break holding bullish implications. Conversely, a breach of 0.8614 could steer the bias towards a downside resurgence. In the bigger picture, a breakthrough of 0.8700 suggests a completed downtrend, targeting 0.8977, while failure maintains the bearish outlook.
Key Takeaways
- Intraday bias targets 0.8700/4 resistance zone.
- A decisive breach has bullish implications, while a 0.8614 breach turns bias to the downside.
- In the bigger picture, a 0.8700 breakthrough suggests a completed downtrend, aiming for 0.8977.
