Home›Forex›Major Pairs›EUR/GBP slides to 0.84 as Head and Shoulders breakdown…

EUR/GBP slides to 0.84 as Head and Shoulders breakdown extends

The pair is trading at its lowest level since June last year, after falling 4.5% since November, with resistance flagged near 0.8545.

Reported · Written up by our desk · Major Pairs

Societe Generale strategist Kenneth Broux said EUR/GBP has extended its slide after breaking the Head and Shoulders neckline at 0.8610, and the move is now viewed as potentially stretched.

FXStreet reported the cross has dropped into the 0.84 area, the lowest since June last year, marking a 4.5% decline since last November.

The next technical levels highlighted include projections near 0.8435, while 0.8545 is seen as interim resistance if any brief rebound develops.

Broux added that the size of the move appears difficult to justify purely from bond spread dynamics, suggesting flows linked to hedging, central bank reserve rebalancing, or conversion activity in a thin market.

More like this

Sources