Key Moments
- EUR/GBP has rebounded from the February low at 0.8610 and is moving toward its 200-day moving average.
- Societe Generale identifies resistance at 0.8720 and near 0.8765, the upper edge of a descending channel.
- A move back below 0.8630 may signal a renewed downturn in the cross in the coming days.
Technical Picture: Rebound From February Trough
Analysts Kenneth Broux and his team at Societe Generale report that EUR/GBP has risen after holding the support level at 0.8610, which aligns with the low reached in February. The cross has since advanced toward its 200-day moving average, a key long-term technical reference.
The bank stresses the need to monitor whether the pair can sustain trading above this moving average, as this could shape the near-term direction of the cross.
Key Levels in Focus
Societe Generale highlights several nearby levels that may influence price action in the short term. The firm points to resistance at 0.8720, followed by another barrier near 0.8765, identified as the upper limit of a descending channel.
| Level | Technical Significance |
|---|---|
| 0.8610 | February trough and recently defended support |
| 0.8630 | Last week’s low; loss of this level could restart the downtrend |
| 200-day moving average | Key long-term trend indicator currently being tested |
| 0.8720 | Projected resistance level |
| 0.8765 | Approximate upper boundary of the descending channel |
The analysts caution that if EUR/GBP fails to stay above last week’s low at 0.8630, the broader downward trend in the cross could re-emerge in the coming days.
Ongoing Downside Bias and Outlook
The team at Societe Generale characterizes the technical tone of the pair as still weak, despite the recent bounce from support. They emphasize the importance of how price action evolves around current levels and the potential formation of a higher low relative to a prior reference point at 1.1411.
According to the bank, the ability of EUR/GBP to establish such a higher low and then attempt a further rebound into April will be a key element to watch in assessing whether the existing downtrend is easing or set to continue.
“EUR/GBP successfully defended the graphical support at 0.8610, corresponding to the February trough, and has since staged a modest rebound towards the 200‑DMA.”
“It will be important to observe whether EUR/GBP can establish itself above this moving average.”
“The next resistance levels are located at a projection of 0.8720, followed by the upper boundary of the descending channel near 0.8765.”
“A failure to hold above last week’s low at 0.8630 could trigger a resumption of the down trend.”
“Technically, the pair continues to trade heavy and it will be important to observe whether it can carve out a higher low than 1.1411 and attempt a rebound from there into April.”
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