EUR/GBP Daily Analysis
A distinct bearish inclination persists in analyzing EUR/GBP market trends. The intraday bias continues to favor the downside, especially after a corrective rebound from 0.8495 concluded at 0.8768. Anticipation of a further descent is reasonable, potentially retesting the 0.8495 low. A decisive break below this threshold would signify a continuation of the larger downtrend. Conversely, surpassing the minor resistance level of 0.8603 would shift the intraday bias to neutral, leading to short-term consolidations before another potential decline.
From a broader perspective, the ongoing developments indicate that the downtrend from the 0.9271 peak (the high of 2022) remains active. This current decrease is interpreted as the third phase of the pattern originating from the 0.9503 high (2020 high). A breach of the 0.8205 level would direct attention towards the 100% projection of the decline from 0.9503 to 0.8205, starting from 0.9271, with a target at 0.7973. Nevertheless, the outlook remains bearish as long as the 0.8768 resistance level is not breached.
Analysis Summary
This analysis highlights the ongoing bearish trend in EUR/GBP, focusing on potential retests of key lows and the significance of resistance levels. The downtrend from 2020 and 2022 highs suggests a continued decline unless specific resistance points are surpassed.
Key Points
- Intraday bias in EUR/GBP remains bearish, with a potential retest of 0.8495 low.
- A break below 0.8495 could reinforce the larger downtrend.
- A long-term bearish outlook remains unless the 0.8768 resistance is breached.
