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The EUR/GBP pair experienced a sharp decline last week, completing a rebound from the 0.8611 level at 0.8788. Technical analysis suggests a bearish bias this week, with the immediate target at 0.8611. A sustained break below this level could extend the decline toward 0.8536, based on the 100% Fibonacci projection of the prior move. Traders are also monitoring the 0.8711 level as a potential near-term resistance. The weekly outlook emphasizes key support and resistance levels, with the overall trend remaining bearish for the pair. This analysis is critical for forex traders managing cross-currency positions, particularly those with exposure to EUR/GBP. The pair's volatility is influenced by broader EUR and GBP dynamics, including European Central Bank (ECB) and Bank of England (BoE) policy differentials. A breakdown below 0.8611 would signal a resumption of the larger downtrend from 0.8863, increasing risk for long positions. Short-term traders may find opportunities in the 0.8611-0.8711 range. For global forex markets, a sustained move toward 0.8536 could trigger broader cross-currency shifts. Traders should watch for confirmation of the bearish scenario through a close below 0.8611, which would validate the projected 0.8536 target. Key levels to monitor this week include 0.8611 (support), 0.8711 (resistance), and the 50-day moving average at 0.8735.
