EURGBP Downtrend Resumes: Key Support Levels To Watch

By Staff of ForexCycle

Tuesday, February 6, 2024 9:27 PM EDT

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After briefly flirtating with resistance, EURGBP has fallen back into its downtrend. Let’s analyze the technical picture to understand what this means for the pair’s next move.

Downtrend Reinforced by Breakdown

Resistance Breached: EURGBP initially surpassed the 0.8567 resistance level but couldn’t hold, signaling a continuation of the downtrend that started at 0.8714.
Support Broken: The subsequent drop below the 0.8545 support further strengthens the bearish outlook.

Potential Downside Targets

Next Support: The immediate support level to watch is at 0.8512. A test of this level is likely in the coming days.
Further Decline: If the selling pressure persists and breaks below 0.8512, the next potential support sits at 0.8490.

Resistance and a Glimmer of Hope

Immediate Hurdle: The initial resistance to overcome for any bullish attempts is at 0.8550.
Retest Possibility: Only a decisive break above this level could trigger another rise and potentially lead to a retest of the 0.8567 resistance.

Overall Sentiment

The technicals suggest that EURGBP remains within a downtrend. A breakdown below 0.8512 could open the door for further decline towards 0.8490. However, a break above 0.8550 would require sustained buying pressure to overcome the established resistance and indicate a potential pause or even a reversal of the downtrend.

More By This Author:

USDCHF Breaks Higher but Faces Key Resistance: Will the Uptrend Resume?
AUDUSD Market Analysis: Rebound And Potential Breakout
EURUSD Market Analysis: Break Above Falling Channel and Possible Rally

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