EURGBP
ANALYSIS EURGBP started moving up in early September, but overall, the pair has been lacking a clear direction and has been moving sideways within a defined channel. This sideways movement reflects uncertainty and the weak underlying fundamentals of both currencies.
Ranging markets can be predictable and offer trading opportunities. Traders can consider short positions near resistance levels for potential retracements or go long at technical support levels in anticipation of a rebound.
EURGBP
TECHNICAL EURGBP is currently near the upper boundary of the horizontal range at 0.8700, where a key trendline intersects with the 200-day moving average. If it fails to break through this level, the pair could drop towards 0.8610 and potentially down to 0.8520, which is closely tied to the 2023 lows. However, if there is a breakout, the exchange rate may rise towards 0.8792, the 38.2% Fibonacci retracement from September 2022 to August 2023.
