Bearish Signals Stack Up on EUR/GBP

In today’s technical analysis, let’s focus on two European currencies and take a closer look at the euro versus the British pound. EUR/GBP is clearly showing signs of technical trouble and has already generated a proper sell signal, with price trading at its lowest levels since the end of August 2025. This alone highlights how serious the current pressure on the pair has become.

From a technical perspective, the key structure on the daily chart is a head and shoulders formation. The black neckline of this pattern has already been broken, which formally activates the bearish setup and provides a clear signal to sell. This breakdown signals that the prior bullish structure has failed and that sellers have taken control.

In addition to the neckline break, we also have a violation of the red ascending trendline that had been connecting higher lows since the end of February 2025. The loss of this uptrend line confirms that the medium-term bullish structure is no longer valid and reinforces the negative bias.

The last important technical reference on the chart is the orange descending line connecting the top of the head with the top of the right shoulder. This line has not yet been broken and currently acts as the upper boundary of the bearish correction. As long as price remains below the black neckline, below the broken red trendline, and below the orange resistance line, the technical sentiment stays clearly negative.

A move back above the black neckline would invalidate the head and shoulders pattern and introduce the first signs of optimism. However, from a broader and more conservative perspective, a proper long-term buy signal would only be triggered by a decisive break above the orange line. Such a move would fully cancel the bearish structure and signal the end of the current downtrend.

For now, none of these bullish conditions are met. The structure remains bearish, momentum favors sellers, and sentiment on EUR/GBP is decisively negative.

Source: https://www.axiory.com/analytics/technical-analysis/bearish-signals-stack-up-on-eur-gbp