🧠 Overview:
This EURGBP daily chart clearly presents a bullish breakout from a long-term descending channel, a successful reclaim of the central structure zone, and a projection toward a key reversal level. This analysis incorporates Smart Money Concepts (SMC), Market Maker Concepts (MMC), and classic structural behavior.
🔍 Technical Breakdown:
📉 Long-Term Bearish Channel (2021–2025)
For nearly 4 years, EURGBP was trapped in a descending channel, forming consistent lower highs and lower lows.
This long-term bearish phase reflects strong supply-side control and institutional distribution.
The breakout above this structure is significant — marking a potential mid- to long-term trend reversal.
🔁 Major Support Zone (0.8300–0.8350)
Price bounced strongly from this historical demand zone multiple times (in 2021, 2022, and recently in 2025).
This zone is critical and acts as a high-volume accumulation area where smart money has stepped in.
The strong reaction from this level in 2025 triggered the breakout of the bearish structure.
🚀 Break of Structure + Retest
After breaking the descending channel, price retested the upper boundary, confirming a structure shift.
The breakout retest succeeded — marking the transition from a bearish phase to a bullish expansion.
📍 Central Zone Flip
The Central Zone, once a resistance/supply area during the downtrend, has now been reclaimed as support.
This is a powerful MMC concept – where the "central balance" of a structure flips and becomes a base for the next impulse.
Current price is sitting just above this zone, indicating bulls are still in control.
🎯 Next Reversal Zone (Target Area: 0.9000–0.9050)
The chart outlines a projected bullish move toward the Next Reversal Zone marked above.
This is a key supply area, likely to trigger profit-taking or institutional sell orders.
Expect price to range or wick into this zone before showing a possible bearish reversal.
🔄 Future Projection Scenarios:
Scenario 1 – Bullish Continuation:
Price continues to build bullish structure and approaches the 0.90 reversal zone.
Rejection from this zone may trigger consolidation or a minor retracement.
Scenario 2 – Major Reversal:
Upon hitting the next reversal zone, price could reverse and fall back toward the Central Zone or even the Major Support below, especially if macroeconomic fundamentals shift.
🔑 Confluences Supporting This Setup:
✅ Element 🧩 Description
🔹 Major Support Historical demand zone with repeated rejections
🔹 Channel Breakout Structure shift confirming bullish interest
🔹 Retest Success Technical confirmation of breakout validity
🔹 Central Zone Flip Old resistance → new support (MMC principle)
🔹 Reversal Zone Anticipated next profit-taking / supply area
📌 Strategic Insight:
Bias: Bullish short-term to mid-term
Entry Opportunity: Lower timeframe pullbacks into Central Zone (or retest zones)
Target: 0.9000–0.9050 area
Watch for Rejection: In reversal zone for potential bearish shift
⚠️ Risk Note:
Always wait for confirmation at reversal zones. Overextended moves without correction can quickly retrace. Manage your trades with stop-losses below key structural levels and maintain strict risk-reward planning.
🧠 Conclusion:
EURGBP has transitioned from a long bearish cycle into a bullish expansion phase. Smart Money accumulation at the base and a clean breakout with retest confirm a strong directional shift. Keep your focus on the Central Zone retests and the Reversal Zone reaction for optimal entries or exits.
This EURGBP daily chart clearly presents a bullish breakout from a long-term descending channel, a successful reclaim of the central structure zone, and a projection toward a key reversal level. This analysis incorporates Smart Money Concepts (SMC), Market Maker Concepts (MMC), and classic structural behavior.
🔍 Technical Breakdown:
📉 Long-Term Bearish Channel (2021–2025)
For nearly 4 years, EURGBP was trapped in a descending channel, forming consistent lower highs and lower lows.
This long-term bearish phase reflects strong supply-side control and institutional distribution.
The breakout above this structure is significant — marking a potential mid- to long-term trend reversal.
🔁 Major Support Zone (0.8300–0.8350)
Price bounced strongly from this historical demand zone multiple times (in 2021, 2022, and recently in 2025).
This zone is critical and acts as a high-volume accumulation area where smart money has stepped in.
The strong reaction from this level in 2025 triggered the breakout of the bearish structure.
🚀 Break of Structure + Retest
After breaking the descending channel, price retested the upper boundary, confirming a structure shift.
The breakout retest succeeded — marking the transition from a bearish phase to a bullish expansion.
📍 Central Zone Flip
The Central Zone, once a resistance/supply area during the downtrend, has now been reclaimed as support.
This is a powerful MMC concept – where the "central balance" of a structure flips and becomes a base for the next impulse.
Current price is sitting just above this zone, indicating bulls are still in control.
🎯 Next Reversal Zone (Target Area: 0.9000–0.9050)
The chart outlines a projected bullish move toward the Next Reversal Zone marked above.
This is a key supply area, likely to trigger profit-taking or institutional sell orders.
Expect price to range or wick into this zone before showing a possible bearish reversal.
🔄 Future Projection Scenarios:
Scenario 1 – Bullish Continuation:
Price continues to build bullish structure and approaches the 0.90 reversal zone.
Rejection from this zone may trigger consolidation or a minor retracement.
Scenario 2 – Major Reversal:
Upon hitting the next reversal zone, price could reverse and fall back toward the Central Zone or even the Major Support below, especially if macroeconomic fundamentals shift.
🔑 Confluences Supporting This Setup:
✅ Element 🧩 Description
🔹 Major Support Historical demand zone with repeated rejections
🔹 Channel Breakout Structure shift confirming bullish interest
🔹 Retest Success Technical confirmation of breakout validity
🔹 Central Zone Flip Old resistance → new support (MMC principle)
🔹 Reversal Zone Anticipated next profit-taking / supply area
📌 Strategic Insight:
Bias: Bullish short-term to mid-term
Entry Opportunity: Lower timeframe pullbacks into Central Zone (or retest zones)
Target: 0.9000–0.9050 area
Watch for Rejection: In reversal zone for potential bearish shift
⚠️ Risk Note:
Always wait for confirmation at reversal zones. Overextended moves without correction can quickly retrace. Manage your trades with stop-losses below key structural levels and maintain strict risk-reward planning.
🧠 Conclusion:
EURGBP has transitioned from a long bearish cycle into a bullish expansion phase. Smart Money accumulation at the base and a clean breakout with retest confirm a strong directional shift. Keep your focus on the Central Zone retests and the Reversal Zone reaction for optimal entries or exits.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.