- EUR/GBP continues to trade below a multi-month range it was in for most of the start of 2024.
- The pair failed to re-enter at the last retest and there is a risk that it heads further south.
EUR/GBP continues to trade below the base of the multi-month range it broke out of on May 22. After the pair fell to a low of 0.8484 on May 29, it retreated and retested the base of the range on May 31. The retest failed and since then EUR/GBP has been falling again.
EUR/GBP Daily Chart
When prices break below ranges, they typically fall to a target that is at least a 0.618 Fibonacci ratio of the range height extrapolated downward. This gives a target between 0.8484 and 0.8479 depending on where the height of the range is measured. The price barely touched the top of this target zone at the bottom of the May 29 sell-off.
A break below the 0.8484 low (May 29) would confirm further weakness, likely to a target around 0.8452, which represents the full height of the range extrapolated downwards.
Alternatively, a break above the May 31 high at 0.8541 would call the downtrend into question.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
