EUR/GBP Technical Outlook: Bullish Reversal Targets 0.8500 After Key Support Hold

The EUR/GBP pair has staged a bullish reversal from the pivotal 0.8460 support level, signaling potential near-term gains toward the 0.8500 resistance barrier. This floor halted a sharp impulsive decline in mid-July and has now capped the recent pullback.

The bounce from 0.8460 completes the C-wave of an ABC corrective structure (wave B) that originated in early August. The price action is currently shaping a daily Long-legged Doji candlestick pattern, underscoring market indecision at a critical inflection point. Combined with an oversold reading on the daily Stochastic oscillator, the technical backdrop favors a continued advance toward 0.8500, which serves as the target for the completion of the short-term impulse wave i.

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