EUR/GBP: Breakout from the Triangle, But Can It Hold?
24 October 2025
In today’s technical analysis, let’s revisit the EUR/GBP, which we analyzed not long ago. Back then, the pair was trading inside a symmetric triangle pattern, marked on the chart with blue lines. This formation reflected a period of tightening volatility and indecision — a coiling market getting ready for a decisive breakout. Now, that breakout is happening as we speak. The price has escaped the triangle to the upside, with the breakout marked in red, suggesting that the buyers are finally taking control after weeks of consolidation.
However, the key question now is whether this breakout will hold or turn out to be yet another false signal. This pair has a recent history of false breakouts, where initial momentum quickly faded and the price returned inside the pattern. Traders, therefore, are understandably cautious this time. A critical level to watch is the yellow horizontal resistance just above the current price. It has repeatedly acted as a cap for bullish attempts, and until EUR/GBP closes a full daily candle above this resistance, the breakout cannot be considered fully confirmed.
From a trading perspective, there are two scenarios to keep in mind. A daily close above the yellow resistance would confirm the breakout and trigger a strong buy signal, opening the door for a move toward the highs from August. On the other hand, if the price comes back inside the triangle, it would mean another false breakout, likely leading to a renewed sell-off and the activation of a long-term bearish signal. For now, momentum favours the buyers — but confirmation is key.