EUR/GBP is testing the upper boundary of its multi-month trading range, with upward momentum continuing to dominate, according to Société Générale FX analysts. A sustained move above key technical levels could pave the way for further gains.
Key Technical Insights:
- The pair is challenging the top of its multi-month range, signaling a potential breakout.
- The 50-day moving average (DMA) at 0.8670 is acting as key short-term support. A hold above this level would help maintain the bullish structure.
- The MACD indicator remains in positive territory, suggesting underlying upward momentum is intact.
Société Générale comments:
“EUR/GBP is probing the upper limit of its multi-month range. The daily MACD remains anchored in positive territory, highlighting the persistence of upward momentum. If a minor pullback occurs, the 50-DMA at 0.8670 could serve as the first layer of support.”
Upside Targets:
- A confirmed breakout could open the path toward the November 2023 high at 0.8765.
- Further resistance lies in the 0.8810–0.8825 zone, based on projected extensions.
Bottom Line:
The near-term outlook for EUR/GBP remains constructive as long as the pair holds above the 0.8670 support zone. A decisive move above current range resistance would confirm bullish continuation, with sights set on higher levels in the coming sessions.