EUR/GBP Drops Back to Range Support: Will It Hold?
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EUR/GBP has fallen to the lower boundary of its six-week range, currently testing the 0.8311 support level. Traders are closely watching this area, as it may determine whether the pair will continue in a sideways trend or break lower. A decisive move below 0.8311 could signal further downside toward 0.8240, aligning with Fibonacci projections.
EUR/GBP Tests Support at Range Low: What’s Next?
EUR/GBP has retraced to the base of its recent six-week trading range, a level around 0.8311 that has acted as consistent support. According to technical analysis principles, the current trend appears sideways, favoring a potential bounce from this level. However, the recent decline has shown persistent bearish momentum, leaving open the possibility of a deeper drop if support does not hold.
Range-Bound or Breakout? Key Levels in Focus
The 0.8311 area is crucial as it has repeatedly contained downward moves over the past several weeks. If EUR/GBP stabilizes here and begins to bounce, it would reinforce the current range-bound pattern, supporting an outlook for further consolidation. However, the current lack of upward momentum suggests traders should be cautious. If the pair breaks through this level decisively, with a longer-than-usual daily candle or multiple consecutive red candles, it would likely signal the continuation of the broader downtrend.
Potential Downside Targets and Fibonacci Levels
A clear break below 0.8311 would mark a significant technical move, pushing EUR/GBP into two-year lows. In this scenario, the next key target would be around 0.8240, aligning with the 61.8% Fibonacci extension of the current range. This level could serve as a potential stopping point if the selling pressure intensifies.
Conclusion: Watch for a Reaction at 0.8311
For EUR/GBP, the 0.8311 level remains pivotal. A confirmed bounce from this range low could extend the sideways trend, while a breakdown would likely trigger further losses. Traders will be watching this level closely in the coming sessions, as the pair’s next move could reveal broader directional cues.
EUR/GBP Tests Support at Range Low: What’s Next?
EUR/GBP has retraced to the base of its recent six-week trading range, a level around 0.8311 that has acted as consistent support. According to technical analysis principles, the current trend appears sideways, favoring a potential bounce from this level. However, the recent decline has shown persistent bearish momentum, leaving open the possibility of a deeper drop if support does not hold.
Range-Bound or Breakout? Key Levels in Focus
The 0.8311 area is crucial as it has repeatedly contained downward moves over the past several weeks. If EUR/GBP stabilizes here and begins to bounce, it would reinforce the current range-bound pattern, supporting an outlook for further consolidation. However, the current lack of upward momentum suggests traders should be cautious. If the pair breaks through this level decisively, with a longer-than-usual daily candle or multiple consecutive red candles, it would likely signal the continuation of the broader downtrend.
Potential Downside Targets and Fibonacci Levels
A clear break below 0.8311 would mark a significant technical move, pushing EUR/GBP into two-year lows. In this scenario, the next key target would be around 0.8240, aligning with the 61.8% Fibonacci extension of the current range. This level could serve as a potential stopping point if the selling pressure intensifies.
Conclusion: Watch for a Reaction at 0.8311
For EUR/GBP, the 0.8311 level remains pivotal. A confirmed bounce from this range low could extend the sideways trend, while a breakdown would likely trigger further losses. Traders will be watching this level closely in the coming sessions, as the pair’s next move could reveal broader directional cues.