EURGBP poised to resume its uptrend following a brief corrective pullback

Fresh bullish momentum extended for the second straight day from a new higher base at 0.8765, bringing EURGBP just shy of its 2025 peak at 0.8829 posted last week. The move signals a likely completion of the recent four-day 0.8829/0.8765 corrective phase and a continuation of the broader uptrend.

Mounting political turmoil in the UK and uncertainty surrounding the upcoming budget are weighing on sterling, while signs of a cooling labor market — with unemployment reaching a four-year high — are reinforcing expectations for a Bank of England rate cut.

A firm break above 0.8829 would confirm a bullish continuation signal and open the way towards 0.8875 (April 23 high), 0.8900 (psychological barrier), and 0.8925 (March 7 high).

Initial supports are located at 0.8800/0.8790 (broken Fibo 76.4% retracement and rising 10DMA), followed by the higher base at 0.8765. Extended dips are expected to find solid buying interest above these levels, keeping the bullish bias intact.

Res: 0.8875; 0.8900; 0.8925; 0.8978
Sup: 0.8800; 0.8790; 0.8765; 0.8750