FX.co ★ EUR/GBP

The EUR/GBP charts show a marked change in the trend that had been building over the past few months. For most of the year, the pair was in a steady downtrend, characterized by steady highs and lows. After breaking through the levels and rising to 0.85400, the pressure continued, transforming these previously reliable areas into upward resistance. As the price entered the weak zone, it eventually bottomed out at the 0.82700-0.82200 area. It began with a series of higher lows near 0.82700, then 0.83600, and then above 0.84100, finally breaking the intermediate resistance level at 0.85400. The ascending triangle that formed in late 2024 and early 2025 is a bullish continuation pattern that indicates rising demand and price pressure against horizontal barriers. However, this area has proven to be a strong ceiling and serves as an important reversal point in the early stages of a longer-term downtrend in 2023. The rejection at 0.87620, the highest point of the consolidation phase since early 2023, shows that the long-term downtrend has not fully reversed. What matters now is the level. This is the critical point at which the market will determine whether to hold support and resume the uptrend or breakout and return to its previous trading range.

The bullish outlook will remain intact as long as the price holds above 0.85400 and begins to form a new base. A move above 0.87620 would constitute a significant technical win for bulls and potentially open the door to higher targets, perhaps the 0.88500 area, which has not been attempted since mid-2022. If the market fails to hold above the 0.85400 support level, the downward pressure could rapidly intensify. A break below 0.84700 would indicate that the strong momentum is fading and a deeper correction towards the consolidation zone around 0.83600 is needed. A break below 0.83600 would shift the focus to a more stable base between 0.82700 and 0.82200. This area has served as support for several months and is the area where most of the accumulation occurs before a breakout. This means that the EUR/GBP chart indicates that the market is in a reversal phase. The long-term downtrend that dominated the year has given way to a short-term positive recovery. The strong rebound from the resistance level of 0.87620 has weakened momentum, and buyers are now forced to defend the support level of 0.85400. 0.86900 and 0.87620 could be retested. A break below 0.85400 would encourage further selling.