EUR/GBP: Recovery challenges important moving averages – Societe Generale

EUR/GBP Recovers from February Lows

According to Kenneth Broux and his team at Societe Generale, the EUR/GBP currency pair has rebounded after finding support at 0.8610, a level last seen in February. The pair is now nearing its 200-day moving average, a key technical indicator.

Analysts point out that resistance is close by, with hurdles at 0.8720 and further up at 0.8765. They caution that if EUR/GBP slips below 0.8630, the broader downward trend could re-emerge in the near term.

Key Technical Insights

• EUR/GBP has managed to hold above the 0.8610 support, which marked the February low, and is now making a gradual move higher toward the 200-day moving average.
• It remains to be seen if the pair can sustain a position above this moving average, which would be a positive technical signal.
• Immediate resistance is seen at 0.8720, with the next significant barrier near the top of the descending channel at 0.8765.
• If the pair falls back below last week’s low of 0.8630, it could signal a continuation of the downward momentum.
• From a technical perspective, EUR/GBP is still under pressure. Observers are watching to see if it can form a higher low above 1.1411 and attempt a recovery into April.

(This report was produced with the assistance of an AI tool and subsequently reviewed by an editor.)