New Yearly Lows for the EURGBP

Today’s technical analysis focuses on the EURGBP pair, particularly considering the absence of American traders due to the bank holiday. The pair has been experiencing a sustained downtrend since the beginning of May, marked by a breakout from a long-term symmetrical triangle pattern. This provided a robust sell signal, followed by a breach of a key horizontal support (indicated in green on the chart). This was a further confirmation of the sell signal.

Subsequently, we witnessed a period of sideways movement until the end of May, before another downswing targeted the blue horizontal support level at 0.857. This level posed significant support for a while, but last week the price finally managed to break through. Thursday saw a retest of this level, now acting as resistance, with a shooting star candlestick pattern providing yet another sell signal.

Friday proved to be a pivotal day for EURGBP. The pair reached new yearly lows, hitting levels not seen since the end of August 2022, thereby reinforcing the bearish sentiment. This latest drop also led to the formation of a downtrend line (represented by the pink line on the chart).

The prevailing sentiment is decidedly bearish, and as long as the price stays below the blue resistance level and the pink downtrend line, a sell signal remains in effect. A return above these levels would negate this bearish sentiment and prompt a buy signal, but at this stage, the probability for such a scenario seems rather limited.

Source: https://www.axiory.com/analytics/technical-analysis/new-yearly-lows-for-the-eurgbp