Will the EURGBP Dive Deeper or Rebound? Key Levels to Watch
11 September 2023
The world of Forex is never short of dramatic twists and turns, and the EURGBP is currently offering an intriguing setup. This particular pair has been on a downward trajectory since the end of September 2022, constantly nudging against a red downtrend line that has stood resilient as a formidable resistance. Every attempt to breach this line has been rebuffed, with the latest being a bounce that pushed prices back.
As we dive deeper into the technicals, there’s another key level to watch – the blue support area around the 0.85 mark. This zone is significant, acting as a cushion against further slides.
So, what's the possible trading play here? If the price manages to pierce through the red downtrend line, traders can anticipate a bullish wave pushing the price towards the yellow zone, set around 0.866. On the contrary, if the blue support gives way, it would signal a bearish continuation. In such a scenario, traders might see the price plunging, possibly revisiting lows experienced in August 2022, around the 0.834 level.
It's a classic tug-of-war situation between the bulls and bears. As always, it’s essential to wait for a confirmed breakout in either direction before making a move. Traders, it’s time to keep your eyes peeled and fingers ready.