Societe Generale analysts, including Kenneth Broux, have identified a bearish technical setup in the EUR/GBP currency pair. According to their analysis, EUR/GBP recently formed a lower high near 0.8740 in April and has struggled to remain above its 200-day moving average, with price action now resembling a Head and Shoulders pattern—a classic indicator of potential downside risk [1].
The analysts highlight the neckline at 0.8610 as a critical support level. A break below this threshold could trigger a deeper pullback, with downside projections at 0.8560/0.8535 and potentially extending to 0.8475 [1]. Conversely, a move above the recent pivot high at 0.8740 would be necessary to negate the bearish formation and signal renewed strength in the pair [1].
No specific market reactions or analyst opinions beyond the technical outlook are provided in the article. There are also no references to ticker symbols or additional forward-looking statements beyond the outlined technical levels [1].
CONCLUSION
Societe Generale's technical analysis points to potential downside risks for EUR/GBP, with key support at 0.8610 and further targets lower if this level breaks. The bearish outlook would be invalidated only by a move above 0.8740. Market participants may watch these levels closely for directional cues.