EUR/GBP Daily Chart Analysis The daily chart of EUR/GBP displays a wide, ranging correction wave that lasted from the middle of October 2025 until the end of February 2026. After 17th Oct 2025, the price went up gradually with the market forming higher highs and higher lows till early November. The pair sped up the movement of 12th Nov, printing a major swing top near 0.8850, along with long bullish candles and upper wicks, revealing that the distribution had already started. This summit was the finishing line of the first rally. After that 12th Nov, the market changed into a medium-term correction phase, as the price was unable to hold the 0.8830-0.8850 resistance zone. During 20th Nov and 24th Dec, the market started a downtrend by making lower highs and lower lows. The fall was more noticeable around 24th Dec, with a large bearish candle cutting below 0.8720 support and thus indicating that the short-term trend was getting weaker. The market drop continued into early January, and on 5th Jan 2026, the price printed a very bearish expansion candle, which took it down to the 0.8650 level. This movement corresponded to a full bearish leg from the November peak; thus, the short-term downtrend that was dominant now was visible in the form of lower swing points. The correction low was made on Jan 29, 2026, around 0.8610, which is the lowest point visible on the chart. It is worth mentioning that this level was a technical confluence area near the lower boundary of the larger channel and the 100% retracement reference shown on the Fibonacci measure. The reaction from Jan 29 was very strong; it gave a powerful bullish impulse into February. The action between Jan 29 and Feb 6 exceeded the minor descending trendline, which suggested that the continuation of the bear period had changed structurally and the correction had become bullish. After Feb 6, the price kept on making higher lows as it first went through the 38.2% retracement level around 0.8685 and then got close to the 23.6% zone near 0.8715-0.8720. The recovery was extended by Feb 16 into the 0.8730-0.8750 supply area, where the consolidation of late December had happened. It is also interesting to note that the candles around Feb 16 and Feb 19 have upper shadows, which indicate a lack of momentum under the horizontal resistance drawn near 0.8760. This resistance level is the same as the upper border of the supply zone that is highlighted and the descending, longer-term moving average, which has been a dynamic resistance since late November. Momentum indicators thus far seem to favor a correction, only a bullish phase rather than a complete trend reversal. The MACD histogram has increased gradually after the beginning of February, signifying a strengthening of bullish momentum, though it is still below the peaks seen in November. RSI has bounced back to near the mid, 50s zone but is not getting overbought, thus signaling that there is still room for either upward or downward movement. The lack of significant overbought levels around 20th Feb implies that the rally is constructive; however, the failure to decisively break above 0.8760 keeps the overall pattern neutral, to bearish. Speaking of the trend pattern, the bigger frame of reference is that from 12th Nov to 29th Jan, which still shows a clear bearish leg. The movement from 29th Jan to 24th Feb looks like a correction within this overall decline. For a bullish reversal that is confirmed, the price would require a close above the 0.8760-0.8780 zone that is maintained and then a higher high past the 28th Nov swing high near 0.8790. On the other hand, a drop below 0.8720 and a break under 0.8685 would reveal 0.8650 and possibly a retest of the 29th Jan low at 0.8610. All in all, EUR/GBP at the moment is essentially compressing below a resistance in a rising corrective channel. The immediate bias is slightly bullish on the upside of 0.8715; however, the prevailing medium-term structure is still corrective within a bigger downtrend until the November swing highs are taken back.
