EURGBP Bearish

Analysis Price: 0.8696 (Updated: 16 February 2026, 22:23 UTC)

Comprehensive analysis for EURGBP showing a predominantly bearish bias with 77% bearish consensus based on combined analytical factors. Raw trader sentiment shows 49% long, 51% short. Market structure, technical patterns, and key levels examined across multiple timeframes.

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Signal Overview

Bearish High Confidence Medium Risk

Market Consensus:

23% Long

77% Short

Valid Timeframes:

M15 H1 H4 D1

Signal Analysis:

The analysis indicates a high confidence bearish bias for EURGBP (signal strength: 54%). Supporting factors include: High probability (95%) resistance zone detected at 0.8726. Contradicting factors: EUR is showing relative strength against GBP (diff: 13%). Risk assessment for this trade is medium. This signal is most valid on the M15, H1, H4, D1 timeframes.

Sentiment Analysis

Note: The sentiment chart below shows actual trader positioning data (49% long / 51% short). The overall bearish bias (77%) mentioned in the page header represents our analytical consensus based on combined technical factors beyond raw sentiment.

LONG SHORT

49% 51%

Historical Sentiment (7 Days)

Sentiment Interpretation

Neutral sentiment with a balanced distribution between long and short positions. This suggests indecision in the market, which could precede a significant move once a clear direction emerges.

Support & Resistance Analysis

Resistance Levels

R1: 0.8742 0.53% ↑

Analysis Price: 0.8696

Support Levels

S1: 0.8683 0.14% ↓

Market Regime:

Range

Analyst Bias:

Unknown

Direction Probability:

50%

Price Position Analysis

Price is currently near support at 0.8683 (0.14% below analysis price) with resistance at 0.8742 (0.53% above). This position near support could present a potential buying opportunity with a favorable risk-reward ratio.

Chart Pattern Analysis

64%

Bullish Engulfing

Reliability:

64%

Detected: Feb 16, 15:16

Pattern Analysis Interpretation

Predominantly bullish patterns detected across timeframes, suggesting upward momentum. The most reliable pattern is a bullish Bullish Engulfing on the H4 timeframe with 64% historical reliability. This pattern is currently only confirmed on the H4 timeframe.

High Probability Zones

Resistance Zone

95%

Zone Level:

0.8719

analysis price:

0.8696

Distance:

0.27%

Confluence Factors:

Head and Shoulders 24% Retracement Volume Spike

Valid on Timeframes:

H1 H4 D1 W1

Resistance Zone

95%

Zone Level:

0.8838

analysis price:

0.8696

Distance:

1.63%

Confluence Factors:

Head and Shoulders 162% Extension Volume Spike

Valid on Timeframes:

H1 H4 D1 W1

Support Zone

95%

Zone Level:

0.8607

analysis price:

0.8696

Distance:

1.02%

Confluence Factors:

Hammer 127% Extension Volume Spike

Valid on Timeframes:

H1 H4 D1 W1

High Probability Zones Interpretation

Price is extremely close to a high probability (95%) resistance zone at 0.8719. This presents a potential selling opportunity with stop loss slightly above the zone. Multiple confluence factors strengthen this level's significance.

Multiple high probability zones exist for this pair, indicating a well-structured technical environment with clear levels for trading decisions.

Volatility Analysis

Select Timeframe:

Daily Range (pips):

55.0

Volatility Regime:

High

Volatility Level:

87%

10-Day ATR Trend

Volatility Interpretation (H1)

EURGBP is experiencing high volatility (87 percentile) with an expected daily range of 55.0 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

EURCHF

0.86

GBPUSD

-0.84

EURAUD

0.84

GBPJPY

-0.83

GBPCHF

-0.81

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, EURAUD. 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: GBPUSD, GBPJPY, 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

-0.87

Very-weak

GBP

0.83

Very-strong

Relative Strength:

-1.70

Bearish Bias

Currency Strength Interpretation (M15)

GBP is significantly stronger than EUR on the M15 timeframe, with a relative strength of -1.70. This suggests a strong bearish bias for EURGBP. With GBP showing absolute strength and EUR showing absolute weakness, this is an ideal scenario for 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.