Technical Analysis:
The EUR/GBP pair is trading at a critical resistance level of 0.8371, a price zone that aligns with recent highs and has previously acted as a rejection point. The Ascending Triangle pattern visible on the chart indicates sustained bullish pressure as higher lows (HL) have formed consistently over the past few sessions.
The Fibonacci extension levels place 0.8371 as a key zone for the 100% projection from the previous leg up, with the next extension target at 0.8400 if bulls succeed. The RSI (Relative Strength Index) is currently at 64, signaling bullish momentum but staying clear of overbought conditions, leaving room for further upside.
Additionally, the Volume Weighted Average Price (VWAP) shows prices remaining above the average, signaling consistent buying interest. If EUR/GBP clears 0.8371 decisively, it could target 0.8400 and beyond. On the flip side, failure to break this level could pull prices back toward 0.8350 or even the support cluster near 0.8325.
Key Levels to Watch:
- Support: 0.8350, 0.8325
- Resistance: 0.8371, 0.8400
Volume and Sentiment:
📊 Volume has steadily increased as EUR/GBP approached 0.8371, signaling heightened market interest. A surge in volume during a breakout could confirm bullish continuation, while a volume drop may suggest hesitation at resistance.
Outlook:
The current structure suggests bulls are attempting to take control, with the ascending triangle pattern and volume dynamics supporting further upside potential. Traders should closely monitor 0.8371, as a move beyond this level could set the tone for further gains.
Fundamental Analysis:
The EUR/GBP pair remains driven by contrasting economic data from the Eurozone and the UK. Recent UK inflation data and BoE policy statements have fueled market uncertainty, while Eurozone economic sentiment has shown signs of improvement. These factors will likely play a critical role in determining near-term direction.
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