EUR/GBP has completed a significant technical shift after breaking down from its prolonged ascending channel and bullish trendline that started in early June. Price action previously respected the channel with higher lows (Bottom 1, Bottom 2, Bottom 3) and consistent bullish momentum, but the recent failure to create a new high, combined with the formation of a lower high, signaled early weakness.
The breakdown occurred as sellers gained control below the demand zone, pushing price out of the channel and closing under key structural support. This move invalidates the short-term bullish bias and opens the door for a potential continuation toward deeper downside levels.
Key technical points:
Breakdown from upward channel and bullish trendline.
Lower high formation before the breakdown.
Demand zone breach increases bearish probability.
Retests of broken trendline could act as resistance.
Bearish Targets:
Target 1: 0.86000 – initial support and psychological round number.
Target 2: 0.85410 – mid-range structural support.
Target 3: 0.85004 – major horizontal support and potential reversal zone.
Traders should monitor how price behaves on any retest of the breakdown area. A strong rejection from this zone would confirm bearish momentum, while a failed retest reclaiming the channel could signal a false breakout.
This analysis is intended for educational purposes only and should not be taken as financial advice. Always manage risk and follow your trading plan
The breakdown occurred as sellers gained control below the demand zone, pushing price out of the channel and closing under key structural support. This move invalidates the short-term bullish bias and opens the door for a potential continuation toward deeper downside levels.
Key technical points:
Breakdown from upward channel and bullish trendline.
Lower high formation before the breakdown.
Demand zone breach increases bearish probability.
Retests of broken trendline could act as resistance.
Bearish Targets:
Target 1: 0.86000 – initial support and psychological round number.
Target 2: 0.85410 – mid-range structural support.
Target 3: 0.85004 – major horizontal support and potential reversal zone.
Traders should monitor how price behaves on any retest of the breakdown area. A strong rejection from this zone would confirm bearish momentum, while a failed retest reclaiming the channel could signal a false breakout.
This analysis is intended for educational purposes only and should not be taken as financial advice. Always manage risk and follow your trading plan
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$ FOREX / GOLD / BTC | Real Trades,Real Result | Risk-managed strategiesn &VIP Signal {My Personal Entries} Join Telegram _ Trade smater ||
📬 Join Free Channel:
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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.