EUR/GBP Technical View: Neutral Bias Amidst Critical Resistance Test

EUR/GBP currently exhibits a neutral intraday bias. The rebound from 0.8453 is interpreted as a corrective move rather than a structural reversal. Upside potential remains capped by the 0.8610 level, which has shifted from support to resistance. A break below 0.8545 would indicate renewed bearish sentiment, targeting the 0.8453 low. Conversely, a sustained break above 0.8610 would challenge the bearish outlook and could propel the pair toward the falling channel resistance at 0.8638.

In the broader context, the rally from 0.8221 in 2024 likely concluded near 0.8863, slightly ahead of the 38.2% Fibonacci retracement level at 0.8867 calculated from the 0.9267 high to the 0.8221 low. A deeper decline would retest the 0.8221 support. For the immediate term, the outlook remains neutral as long as the 0.8610 level holds. However, a sustained break above 0.8610 would suggest that the decline from 0.8863 was a correction within a larger uptrend rather than a reversal.

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