Societe Generale economists report that EUR/GBP has slipped below its 200-day moving average (200-DMA), currently at 0.8690, and is now testing the February low near 0.8610, which may serve as interim support [1]. The analysts highlight that if the 0.8610 level fails to hold, the currency pair could see a deeper move toward 0.8580 and potentially 0.8535, marking further downside risk [1]. The technical analysis indicates a sequence of lower peaks and troughs on the daily chart, suggesting an ongoing downtrend [1].
Despite the bearish momentum, Societe Generale notes that EUR/GBP, along with the euro, sterling, Bunds, and Gilts, are at or close to oversold levels and are overdue for a bounce in broader EUR and GBP terms [1]. A brief rebound is possible if the pair manages to reclaim the 200-DMA, but the primary focus remains on whether the 0.8610 support can be defended [1].
No specific market reactions or analyst opinions regarding future price targets beyond the technical projections are provided in the article. The report does not mention any ticker symbols or provide concrete data on trading volumes or market sentiment beyond the technical analysis [1].
CONCLUSION
Societe Generale sees EUR/GBP at risk of a deeper downtrend if the 0.8610 support fails, with technical projections pointing to 0.8580 and 0.8535 as potential targets. However, the pair and related assets are considered oversold and may be due for a rebound. The market takeaway is cautious, with attention focused on whether key support levels can be maintained.