Trend traders huddle up!
EUR/GBP is hanging around a key support area that could be a pretty decent spot to jump in on the pair’s uptrend.
Here’s what we’re seeing on the 4-hour time frame!
EUR/GBP 4-hour Forex Chart by TradingView
The euro didn’t get much love in previous trading sessions as the U.S. dollar bounced back after Trump’s more conciliatory comments on China’s tariffs.
Meanwhile, Sterling rode the wave of broad risk rallies and got an extra boost after Bank of England (BOE) member Greene hinted the Bank might keep rates steady through 2026 to manage rising inflation risks.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Euro and the British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
How low can EUR/GBP slide before the trend traders start circling back in?
EUR/GBP pulled back from the .8725 mid-channel resistance last week and is now hanging around .8680, right at the bottom of an ascending channel that’s been holding since mid-August.
If we start seeing green candles and the pair stays above the S1 (.8658) Pivot Point or the .8675 channel support, that could set up a solid recovery and keep the months-long uptrend alive.
In this scenario, the .8700 and .8750 zones—or even the R1 (.8729) Pivot Point—are worth watching for potential upside targets.
But if the recent slide keeps going and the pair sustainably drops below .8650, we could be looking at a trip down to .8600 or even .8580.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
