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EURGBP Bearish

Analysis Price: 0.8704 (Updated: 1 October 2025, 16:12 UTC)

Comprehensive analysis for EURGBP showing a predominantly bearish bias with 85% bearish consensus based on combined analytical factors. Market structure, technical patterns, and key levels examined across multiple timeframes.

Signal Overview

Bearish High Confidence Low Risk
Market Consensus:
15% Long
85% Short
Valid Timeframes:
M15 H1 H4 D1

Signal Analysis:

The analysis indicates a high confidence bearish bias for EURGBP (signal strength: 69%). Supporting factors include: High probability (95%) resistance zone detected at 0.8726; Retail sentiment is 73% bearish; EUR is showing relative weakness against GBP (diff: 14%). Risk assessment for this trade is low. This signal is most valid on the M15, H1, H4, D1 timeframes.

Sentiment Analysis

LONG SHORT
29% 71%

Historical Sentiment (7 Days)

Sentiment Interpretation

Bearish sentiment with 71% of traders holding short positions. The market has a negative bias, but watch for signs of exhaustion if this percentage increases further.

Support & Resistance Analysis

Resistance Levels

R1: 0.8742 0.44% ↑
Analysis Price: 0.8704

Support Levels

S1: 0.8689 0.17% ↓
Market Regime:
Downtrend
Analyst Bias:
Unknown
Direction Probability:
60%

Price Position Analysis

Price is currently near support at 0.8689 (0.17% below analysis price) with resistance at 0.8742 (0.44% above). This position near support could present a potential buying opportunity with a favorable risk-reward ratio.

Chart Pattern Analysis

H4
63%
Symmetric Triangle
Reliability:
63%
Detected: Oct 1, 00:26

Pattern Analysis Interpretation

Predominantly neutral patterns detected, suggesting a potential consolidation phase. The most reliable pattern is a neutral Symmetric Triangle on the H4 timeframe with 63% historical reliability. This pattern is currently only confirmed on the H4 timeframe.

High Probability Zones

No high probability zones detected for EURGBP at this time.

Volatility Analysis

Select Timeframe:
Daily Range (pips):
58.0
Volatility Regime:
High
Volatility Level:
92%
10-Day ATR Trend

Volatility Interpretation (H1)

EURGBP is experiencing high volatility (92 percentile) with an expected daily range of 58.0 pips. This above-average movement creates trading opportunities but requires careful risk management. Consider slightly wider stop losses and moderate position sizing.

Correlation Analysis

Top Correlations with EURGBP

GBPAUD
-0.83
EURCHF
0.81
GBPCAD
-0.81
GBPCHF
-0.77
EURUSD
0.75

Correlation Interpretation

Understanding how EURGBP correlates with other pairs can help with portfolio diversification and risk management. Strong positive correlations (above 0.7) indicate pairs that move similarly, while strong negative correlations (below -0.7) show pairs that typically move in opposite directions.

EURGBP shows strong positive correlation with: EURCHF, EURUSD. This means these pairs tend to move in the same direction. Trading in the same direction on multiple correlated pairs increases portfolio risk, while finding divergences between correlated pairs can highlight potential reversal opportunities.

EURGBP shows strong negative correlation with: GBPAUD, GBPCAD, GBPCHF. This means these pairs tend to move in opposite directions. Negatively correlated pairs can be useful for hedging strategies or to confirm signals (a buy signal in one pair would be supported by a sell signal in the negatively correlated pair).

Currency Strength Analysis

Select Timeframe:
EUR
0.60
Strong
vs
GBP
-0.61
Weak
Relative Strength:
1.21
Bullish Bias

Currency Strength Interpretation (M15)

EUR is significantly stronger than GBP on the M15 timeframe, with a relative strength of 1.21. This suggests a strong bullish bias for EURGBP. With EUR showing absolute strength and GBP showing absolute weakness, this is an ideal scenario for a long position.

How to Use This Analysis

This comprehensive analysis provides multiple perspectives on EURGBP to help inform your trading decisions:

  • Sentiment Analysis: Use to understand market positioning and potential contrarian opportunities
  • Support & Resistance: Identify key price levels for setting stop losses and take profits
  • Pattern Analysis: Recognize technical formations that may indicate continuation or reversal
  • Volatility Analysis: Adjust position sizing and risk management based on current market conditions
  • Currency Strength: Compare the relative performance of individual currencies within the pair
  • Correlation Analysis: Understand how this pair moves in relation to others for portfolio diversification

For optimal results, consider how these different factors align. The strongest trading opportunities typically occur when multiple analytical tools show confirmation across different timeframes.

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