EUR/GBP has recently broken through the key level of 0.8294, indicating a resumption of the larger downtrend. This week, the focus remains on the downside with the initial target set at 0.8242, which is the 61.8% projection of the move from 0.8624 to 0.8294 from 0.8446. A further break below this level could lead to a test of the key support at 0.8201.
If there is a move to the upside, a break above the minor resistance at 0.8339 could shift the intraday bias to neutral temporarily. However, the overall outlook remains bearish as long as the resistance at 0.8446 holds, especially in the event of a rebound.
Looking at the bigger picture, the downtrend from the 2022 high of 0.9267 is still ongoing. The next target is set at 0.8201, the low of 2022, with expectations of strong support at that level to potentially trigger a rebound. Nonetheless, the bearish outlook will persist as long as the resistance at 0.8624 remains intact, even in the scenario of a significant rebound. A clear break below 0.8201 would signal a long-term bearish reversal.
In the broader long-term perspective, the price action from the 2020 high of 0.9499 is viewed as part of a larger range pattern extending from the 2008 high of 0.9799. It is anticipated that the range-bound trading will persist within the levels of 0.8201 and 0.9499 until there is a definitive indication of an imminent breakout. Traders and investors should closely monitor these key levels for potential trading opportunities and trend reversals in the EUR/GBP currency pair.
