EUR/GBP Analysis
The recent shift in the EUR/GBP exchange rate, marked by the breach of the 0.8652 support level, suggests that the corrective rebound, which started from 0.8495, might have concluded at 0.8768. This change indicates a renewed focus on a downward trajectory, with immediate attention on the 0.8618 support level. A decisive break below this threshold could signal a movement towards retesting the 0.8495 low. Conversely, a rise above the 0.8686 minor resistance level would neutralize the current bearish intraday bias, indicating a potential shift in momentum.
Expanding the analysis to a broader perspective, the currency pair’s trajectory becomes more complex due to a deeper-than-anticipated decline from the 0.8768 level. Should the pair firmly breach the 0.8618 support, it would imply that the downtrend initiated from the 2022 peak of 0.9271 is still active. This scenario could lead to a further decline towards the 0.8945 low. However, overcoming the 0.8768 barrier could reignite speculation about a medium-term bullish reversal.
Analysis Summary
The EUR/GBP exchange rate demonstrates a bearish inclination following the break of the 0.8652 support, with the potential to retest the 0.8495 low. A broader perspective shows mixed signals, where a break below 0.8618 suggests a continuing downtrend from 2022’s high while surpassing 0.8768 might indicate a bullish reversal.
Key Points
- A breach of 0.8652 support hints at the ending of a corrective rebound from 0.8495.
- A potential retest of 0.8495 is low if 0.8618 support is broken.
- A move above 0.8768 could signal a medium-term bullish reversal.
