EURGBP - RESISTANCE TESTED, IS THE SHARP TREND READY TO FLIP?Symbol - EURGBP
CMP - 0.8460
The EURGBP pair is currently within the distribution phase (with a news-driven backdrop) and has tested the resistance level at 0.8461 and the associated liquidity zone. However, a false breakout has occurred, indicating a lack of sustained upward momentum. Meanwhile, the Dollar Index is experiencing a decline following the announcement of new tariffs by President Trump, which generally triggers a market-wide rally. However, in anticipation of the upcoming Non-Farm Payroll (NFP) report, the market is shifting towards profit-taking as growing risks become more apparent. Key economic news releases are expected, which could introduce significant volatility.
From a technical perspective, following a strong price movement, the currency pair has formed a false breakout of resistance and is now consolidating within the selling zone. Should the bears manage to maintain the price below 0.8461, a short-term correction towards the 0.5 Fibonacci level or the Fair Value Gap (FVG) zone can be anticipated.
Resistance levels: 0.8460
Support levels: 0.8427, 0.8396
The current market conditions are complex, driven by an unstable backdrop. However, from a technical standpoint, this scenario mirrors a typical false breakout of a significant resistance level, which, according to historical data, often precedes strong price movements following the breakout of key levels.
