EURGBPLooking at your EUR/GBP analysis, the pair appears to be approaching a critical reversal zone that could mark the end of the current downtrend.
The price action shows a clear Elliott Wave structure, with what appears to be a completed 5-wave decline from the highs marked at point (a). Currently, the pair is testing the significant support area highlighted in the pink box around the 0.786 level (0.83479), which coincides with the completion of wave 5.
This convergence of technical factors suggests we're entering a high-probability reversal area. The completion of the impulsive wave structure, combined with the pair reaching this key support zone, indicates that selling pressure may be exhausting.
From this level, we should anticipate a bullish reversal to develop soon. The initial upside targets would likely include the previous wave 4 area and the descending trendline resistance. A successful break above these levels would confirm the trend reversal and open the path for a more substantial recovery move.
Traders should watch for early signs of buying interest, such as bullish candlestick patterns or positive divergences on momentum indicators, to confirm the anticipated reversal. The risk-reward setup appears favorable for long positions near current levels, with stops below the support box.
