EURGBP Bearish

Analysis Price: 0.8398 (Updated: 17 May 2025, 15:39 UTC)

Comprehensive analysis for EURGBP showing predominantly bearish sentiment with 75% of traders in short positions. Market structure, technical patterns, and key levels examined across multiple timeframes.

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Signal Overview

Bearish Medium Confidence Medium Risk

Market Consensus:

25% Long

75% Short

Valid Timeframes:

M15 H1 H4 D1

Signal Analysis:

The analysis indicates a medium confidence bearish bias for EURGBP (signal strength: 50%). Supporting factors include: High probability (95%) resistance zone detected at 0.8421; Technical patterns identified: Bearish Rectangle (H4). Contradicting factors: Retail sentiment is 72% bullish. Risk assessment for this trade is medium. This signal is most valid on the M15, H1, H4, D1 timeframes.

Sentiment Analysis

LONG SHORT

72% 28%

Historical Sentiment (7 Days)

Sentiment Interpretation

Bullish sentiment with 72% of traders holding long positions. The market has a positive bias, but watch for signs of exhaustion if this percentage increases further.

Support & Resistance Analysis

Resistance Levels

R1: 0.8441 0.51% ↑

Analysis Price: 0.8398

Support Levels

S1: 0.8394 0.05% ↓

Market Regime:

Downtrend

Analyst Bias:

Unknown

Direction Probability:

75%

Price Position Analysis

Price is currently near support at 0.8394 (0.05% below analysis price) with resistance at 0.8441 (0.51% above). This position near support could present a potential buying opportunity with a favorable risk-reward ratio.

Chart Pattern Analysis

93%

Symmetric Triangle

Reliability:

93%

Detected: May 17, 14:10

90%

Doji

Reliability:

90%

Detected: May 17, 04:40

69%

Rectangle

Reliability:

69%

Detected: May 17, 10:10

Pattern Analysis Interpretation

Predominantly neutral patterns detected, suggesting a potential consolidation phase. The most reliable pattern is a neutral Symmetric Triangle on the H1 timeframe with 93% historical reliability. Multiple timeframes showing pattern confirmation increases the reliability of the signal.

High Probability Zones

Resistance Zone

95%

Zone Level:

0.8443

analysis price:

0.8398

Distance:

0.54%

Confluence Factors:

Double Top 62% Retracement Volume Spike

Valid on Timeframes:

H1 H4 D1 W1

High Probability Zones Interpretation

Price is approaching a high probability (95%) resistance zone at 0.8443, currently 0.54% away. Consider preparing a sell strategy as price approaches this level, watching for confirmation signals.

Volatility Analysis

Select Timeframe:

Daily Range (pips):

85.0

Volatility Regime:

Low

Volatility Level:

22%

10-Day ATR Trend

Volatility Interpretation (H1)

EURGBP is exhibiting low volatility (22 percentile) with an expected daily range of just 85.0 pips. This reduced movement typically indicates consolidation or indecision in the market. Consider tighter stop losses but be aware that breakout potential increases after periods of low volatility.

Correlation Analysis

Top Correlations with EURGBP

EURJPY

0.83

GBPCAD

-0.83

GBPCHF

-0.72

EURUSD

0.71

EURAUD

0.68

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: EURJPY, 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: 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

-0.25

Neutral

GBP

0.06

Neutral

Relative Strength:

-0.31

Bearish Bias

Currency Strength Interpretation (M15)

GBP is moderately stronger than EUR on the M15 timeframe, with a relative strength of -0.31. This suggests a mild bearish bias for EURGBP. Monitor for additional confirmation signals before entering a short 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.