EURGBP – 200DMA Currently Containing Pullback from Multi-Week High

EURGBP extended its pullback on Friday, sliding further from the new 3½-month high of 0.8624 reached the previous day.

The fresh decline breached the pivotal 200DMA at 0.8555, and a sustained break below this level could reinforce bearish signals, suggesting a potential reversal pattern on the daily chart.

However, the pattern’s completion hinges on breaking the key Fibo support at 0.8532 (38.2% retracement of the 0.8362/0.8624 rise), which would open the door for a deeper correction.

Despite this, the overall bullish daily studies suggest that the current correction might be limited, positioning the pair for a fresh push higher. If the 200DMA successfully contains the dip, it could be seen as a healthy correction within the recent steep uptrend.

A close above the breached Fibo support at 0.8567 (23.6%) would reduce immediate downside risk, but further upside momentum is needed to confirm a higher low and shift the near-term focus back to the upside.

Res: 0.8567; 0.8578; 0.8595; 0.8614
Sup: 0.8556; 0.8532; 0.8510; 0.8475