EUR/GBP Pressures Key Support – Bearish Breakout Imminent?

The British Pound remains under consistent bearish pressure, and the EUR/GBP pair is gradually declining, currently testing a crucial long-term horizontal support area, marked in green on the chart between 0.8827 and 0.8265. This support zone has historically acted as a strong demand area, but the sellers are increasing the pressure, signaling a potential bearish breakout.

The price action shows a gradual increase in selling momentum, indicating a higher probability of a breakdown. If the price closes below this green support zone, it would confirm a bearish breakout, leading to new long-term lows for the pair. This would be a strong sell signal, suggesting a continuation of the bearish trend.

Alternatively, if the support holds and the price bounces, the target would be the orange horizontal resistance above, providing a short-term buying opportunity. However, the current price behavior suggests a greater willingness for a bearish breakout, and traders should be prepared for a downward continuation.

Source: https://www.axiory.com/analytics/technical-analysis/eur-gbp-pressures-key-support-bearish-breakout-imm