EURGBP – limited correction to precede fresh push lower

EURGBP holds within narrow consolidation on Thursday after hitting new over one year low in strong bearish acceleration in past couple of sessions.

The pair is also on track for the third consecutive strong weekly loss, as Sterling continues to benefit from calmer political situation after resignation of PM Starmer (although still with a lot of uncertainty about potential new PM Burnham’s policies and cabinet members).

Strongly oversold conditions on daily chart suggest that bears may pause for consolidation / limited correction, as larger bears remain firmly in play.

Initial resistance lays at 0.8543 (broken Fibo 50% retracement of 0.8222/0.8865) and 0.8553 (broken 100WMA / weekly cloud base) with weekly close below these levels to reinforce broader bearish structure.

Stronger upticks, on the other hand, should stay capped under 0.8600 zone (falling 20DMA / former higher base) to provide better selling levels for fresh push lower.

Res: 0.8543; 0.8553; 0.8566; 0.8600
Sup: 0.8500; 0.8467; 0.8449; 0.8414