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EURGBP Long-Term Range Remains Intact

EURGBP has been trading in a broad range since Oct 2016. The parameters of this range are 0.8300 - 0.9300. The bear cycle that started Sep 2022 has exposed the base of the range. The range's lowest print has been 0.8203, on Mar 7 2022, and the most recent low so far is 0.8311, the Oct 1 low.

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  • EURGBP has been trading in a broad range since Oct 2016.
  • The parameters of this range are 0.8300 - 0.9300.
  • The bear cycle that started Sep 2022 has exposed the base of the range.
  • The range's lowest print has been 0.8203, on Mar 7 2022, and the most recent low so far is 0.8311, the Oct 1 low.
  • While the cross remains inside the range, history suggests that the support is likely to prevail. If correct, this would result in a medium-term bull cycle that could ultimately result in a climb towards the top of the range at 0.9300, over the next 1 - 2 year time horizon.
  • A clear and confirmed bearish range breakout however, would represent a significant technical development.
  • Today’s strong rally could be an early sign of base building. However, moving average studies on the daily scale are still in a bear-mode position and this suggests a downtrend remains intact for now.
  • Price levels to watch are:
    • Resistance at 0.8464, the Sep 11 low.
    • Major support at 0.8203, the Mar 7 2022 low.
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  • EURGBP has been trading in a broad range since Oct 2016.
  • The parameters of this range are 0.8300 - 0.9300.
  • The bear cycle that started Sep 2022 has exposed the base of the range.
  • The range's lowest print has been 0.8203, on Mar 7 2022, and the most recent low so far is 0.8311, the Oct 1 low.
  • While the cross remains inside the range, history suggests that the support is likely to prevail. If correct, this would result in a medium-term bull cycle that could ultimately result in a climb towards the top of the range at 0.9300, over the next 1 - 2 year time horizon.
  • A clear and confirmed bearish range breakout however, would represent a significant technical development.
  • Today’s strong rally could be an early sign of base building. However, moving average studies on the daily scale are still in a bear-mode position and this suggests a downtrend remains intact for now.
  • Price levels to watch are:
    • Resistance at 0.8464, the Sep 11 low.
    • Major support at 0.8203, the Mar 7 2022 low.