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EURGBP edges higher after 13-month low as bears pause
The pair bounced after a 0.8% drop on Wednesday, while technical levels like the 0.8550 cap and 0.8467 support are in focus.
EURGBP moved modestly higher early Thursday after falling to a 13-month low the prior day, following a 0.8% slide on Wednesday. Action Forex said Wednesday marked the biggest daily loss since June 22, and that the pound’s sharp move was linked to expectations around new UK Prime Minister Burnham appointing a fiscally conservative finance minister to manage fragile public finances.
The outlet attributed Thursday’s uptick partly to oversold conditions and some profit-taking, noting that any recovery may still reflect positioning for another push lower rather than a full trend reversal. It added that the daily technical outlook remains bearish, though overstretched momentum studies could allow for a corrective move.
Action Forex highlighted nearby levels that could limit upside, including the 10-day moving average at 0.8520 and a potential cap around the 0.8550 zone tied to prior retracement levels. It also pointed to 0.8467, described as a Fibo support level, where a firmer break would signal continuation of the larger downtrend and would put targets at 0.8373 and 0.8355 in view.