British Pound: Remains under pressure below resistance against Euro – Societe Generale

Societe Generale’s Kenneth Broux and colleagues note that EUR/GBP has rebounded sharply after forming an interim low near 0.8450 in July, but the recovery has stalled around 0.8585. The pair is consolidating in a narrow range, with 0.8530 acting as short-term support and 0.8585/0.8610 as key resistance levels, while the 200-DMA near 0.8660/0.8690 caps the broader upside.

Recovery stalls near key levels

"EUR/GBP staged a sharp rebound after carving out an interim low near 0.8450 in July."

"The recovery has stalled near 0.8585, and the pair is now consolidating within a narrow range."

"A break above 0.8585 would confirm a broader recovery towards the graphical level of 0.8610 representing the low of May and perhaps even towards the 200-DMA at 0.8660/0.8690."

"The lower boundary of the recent range at 0.8530 may serve as a short-term support."

"EUR/GBP bid at 0.8575 after yesterday’s close above 50dma (0.8559). The July high of 0.8588 is next resistance."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)