Recent price action and key levels

However, failure to clear 0.8383 could trigger renewed selling pressure, leading to a deeper pullback. The first key support to watch remains at 0.8321. A break below this level would indicate fading bullish momentum and could expose the pair to further downside risks, with stronger support emerging around 0.8285.

Market participants will be monitoring price action closely to determine whether EUR/GBP can sustain its upward momentum. A decisive breakout above 0.8472 could lead to increased bullish participation, with upside targets becoming more pronounced. However, failure to clear these resistance levels convincingly may result in renewed selling pressure, keeping price action within a broader consolidation range.

The recent momentum in EUR/GBP reinforces the view that the corrective decline from 0.8472 has already found its low at 0.8239. Price action has been steadily recovering, with the intraday bias leaning to the upside.

Upside targets and resistance zones

Traders should also keep an eye on broader market sentiment and external factors influencing the euro and the pound, as shifting risk dynamics or central bank commentary could add volatility to the pair’s outlook. Until a clear breakout is confirmed, price movement is likely to remain choppy within the established range.

Currently, the pair is eyeing the 61.8% retracement of the 0.8472 – 0.8239 decline, which stands at 0.8383. A sustained move above this level would strengthen bullish sentiment and open the door for a push towards the key resistance at 0.8472, where the previous downturn began.

Should EUR/GBP successfully breach the 61.8% Fibonacci retracement level at 0.8383, the next key upside target lies at 0.8425. This level has previously acted as both support and resistance, making it a notable pivot point for traders assessing the pair’s strength. A sustained move beyond this region would further reinforce bullish sentiment, increasing the likelihood of a retest of the recent swing high at 0.8472.

Downside risks and support levels

On the downside, immediate support is seen at 0.8321. A drop below this level would neutralise the bullish bias, signalling a potential pause in the recovery momentum.

On the downside, minor support is seen at 0.8321. A dip below this level would neutralise the immediate bullish bias, potentially signalling a phase of consolidation before the next directional move. Traders will be closely watching how the price reacts around these key levels to gauge the next phase of market sentiment.

A break above 0.8472 would mark a significant technical development, as it would confirm the end of the previous corrective decline and potentially trigger an extended rally. In such a scenario, the next resistance zone to watch would be around 0.8500, a psychological round figure that could attract selling interest. If bullish momentum remains intact beyond this level, attention may shift towards the 0.8535 region, a level last seen during previous upswings.

The recent upward momentum in EUR/GBP suggests that the corrective decline from 0.8472 has already found a bottom at 0.8239. This shift in price action reinforces the view that the pair has resumed its upward trajectory, with intraday bias now favouring further gains.

Recent price action and key levels

While the short-term bias remains tilted to the upside, traders should be mindful of these downside risks. A failure to hold above key support levels could prompt a shift in sentiment, leading to renewed bearish momentum and a potential reassessment of the current market structure.

While the broader outlook for EUR/GBP appears constructive, downside risks remain, particularly if the pair fails to sustain momentum above key support levels. The first line of defence for the bulls is seen at 0.8321, a minor support level that has played a role in recent price fluctuations. A move below this threshold would indicate a loss of short-term bullish control, potentially leading to a deeper pullback.

Currently, the pair is approaching a key technical level—the 61.8% Fibonacci retracement of the 0.8472 to 0.8239 decline, which stands at 0.8383. This level serves as a critical hurdle in the short term, as a break above it would confirm the strength of the ongoing rebound and open the door for additional upside movement.

Potential breakout and downside risks

A decisive break above 0.8383 would mark a significant bullish development, setting the stage for a potential retest of the 0.8472 resistance level. If buyers maintain control and push beyond this key barrier, the broader trend could shift in favour of further upside, potentially extending gains towards the 0.8500 psychological level.

In the event of a break below 0.8321, attention would shift to the 0.8285 region, which aligns with previous reaction lows. This level could serve as an initial buffer against further selling pressure, but a decisive breach would expose the pair to a potential retest of the 0.8239 low. A fall towards this level would negate the recent recovery and raise the possibility of an extended corrective move.

Further downside acceleration below 0.8239 would shift the broader outlook towards bearish territory, increasing the risk of a more pronounced decline. In this scenario, EUR/GBP could target the 0.8200 psychological level, a key area where buying interest may emerge. If selling pressure persists beyond this point, the next notable support would be around 0.8175, a level that previously acted as a demand zone.