British Pound: Head and shoulders signals gains against Euro – Societe Generale

Societe Generale’s technical analysts observe EUR/GBP has formed a lower peak around 0.8690 below its 200‑day moving average and is pulling back towards the neckline of a Head and Shoulders pattern. The formation points to potential downside, with resistance at 0.8690/0.8700 and projected downside objectives at 0.8565 and 0.8535/0.8520 if the rebound fails.

Pattern targets lower projections

"EUR/GBP formed a lower peak around 0.8690 (below its 200-DMA) and has pulled back towards the neckline of the Head and Shoulders pattern."

"The formation points towards potential downside."

"If a brief rebound develops, recent pivot high of 0.8690/0.8700 may serve as an important hurdle."

"An inability to overcome this resistance may lead to persistence in down move."

"The next objectives could be located at projections of 0.8565 and 0.8535/0.8520."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)