The EUR/GBP pair continues to trade within a sideways range, maintaining a neutral intraday bias. The recent rebound from 0.8453 is interpreted as a corrective bounce. Should the exchange rate extend its upward movement, robust resistance is anticipated at the 0.8610 level, which has transitioned from support to resistance, thereby capping further gains. Conversely, a drop below the 0.8530 support would shift the bias back to the downside, targeting a retest of 0.8453. Alternatively, a decisive break above 0.8610 could trigger a more substantial rally toward the descending channel resistance, currently positioned at 0.8640.
From a broader perspective, the rally originating from the 2024 low of 0.8221 appears to have concluded at 0.8863, narrowly missing the 38.2% Fibonacci retracement level of the 0.9267 (2025 high) to 0.8221 move, which sits at 0.8867. A deeper decline toward 0.8221 is expected. For the time being, the outlook will remain neutral at best, provided the 0.8610 support-turned-resistance holds.
