EUR/GBP Technical Outlook – Will the Uptrend Hold Above 0.8710 Support?

The EUR/GBP pair is currently trading around 0.8735, showing short-term volatility within a rising channel structure on the 15-minute timeframe. After a sharp rally from the 0.8690 area, the pair recently reached a local high near 0.8748, where it faced resistance and began to pull back.

Key Technical Observations:

1. Fibonacci Retracement Levels:
   The recent upward impulse has been mapped using Fibonacci retracement levels. Key levels to watch include:

   • 0.786 – 0.8720 (minor support)
   • 0.618 – 0.8718 (important retracement zone)
   • 0.5 – 0.8715
   • 0.382 – 0.8712
   • 0.236 – 0.8710

   Price has already tested the 0.786 and 0.618 retracement zones, suggesting that bulls are attempting to hold this area as a short-term support base.

2. Trend Structure:
   The overall intraday trend remains bullish as long as price holds above 0.8710. The ascending channel (green lines) indicates steady higher highs and higher lows, although the pair is currently consolidating near mid-channel levels after facing upper channel resistance.

3. Resistance Zone:
   Immediate resistance lies between 0.8740–0.8750, aligned with the previous swing high and upper channel trendline. A clear breakout above this zone may open the path toward 0.8760–0.8770 levels.

4. Support Zone:
   If the pair breaks below 0.8710, momentum could shift in favor of sellers, pushing prices back toward 0.8695–0.8685 — the lower boundary of the channel.

Momentum & Sentiment:

Short-term momentum indicators show a slight bearish correction after the recent bullish spike, reflecting profit-taking near resistance. However, the structure remains constructive as long as the retracement levels hold.

Trading Outlook:

• Bullish Bias: Above 0.8710, targeting 0.8750 / 0.8770
• Bearish Bias: Below 0.8710, targeting 0.8690 / 0.8680

Conclusion:

EUR/GBP is in a corrective pullback phase within a broader short-term uptrend. A bounce from the Fibonacci cluster (0.8715–0.8720) could reignite bullish momentum, while a decisive break below 0.8710 would signal short-term weakness. Traders should watch for confirmation around these levels before taking directional positions.