EURGBP faces resistance from a thin daily cloud, which poses challenges to recovery and increases the risk of a stall

The two-day recovery appears to be losing momentum as it repeatedly struggles to break above the thin daily cloud. The long upper shadows on the daily candles signal continued pressure.

The daily chart’s technical outlook remains bearish, with moving averages in a full bearish setup and the 14-day momentum indicator turning downward, approaching the centerline.

If the pair fails again to break through the cloud top, which is reinforced by the 55-day moving average, this would signal a stalled recovery and heighten the risk of a new downturn, potentially retesting the April 30 low at 0.8530 and the April 14 low at 0.8520.

Only a decisive move and close above the 0.8560/75 zone, which includes a cluster of daily moving averages (10/20/100) and the 38.2% Fibonacci retracement level of the 0.8644/0.8530 bear leg, would offer relief and shift the near-term focus towards an upward trend.

Res: 0.8560; 0.8575; 0.8587; 0.8605

Sup: 0.8545; 0.8530; 0.8520; 0.8503