EURGBP Analysis : Breakout, Central Zone Flip & Reversal Target🧠 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.
