Downtrend risk below key support – Societe Generale

Societe Generale economists note that EUR/GBP has slipped below its 200‑DMA and is testing the February low near 0.8610, which may offer interim support. They highlight the risk of a deeper move toward 0.8580 and 0.8535 if this level fails, while the cross is described as technically oversold and overdue a bounce in broader EUR and GBP terms.

Testing support as downtrend extends

“EUR/GBP recently slipped below its 200‑DMA (now at 0.8690), extending the pullback toward the February low at 0.8610, which may provide interim support. A brief rebound is possible; however, the key focus is whether the pair can reclaim the moving average.”

“A failure to defend 0.8610 would confirm a sequence of lower peaks and troughs on the daily chart and could deepen the downtrend toward the lower boundary of the descending channel near 0.8580, followed by projections around 0.8535.”

“The euro, sterling, Bunds and Gilts are at or close to oversold levels and overdue a bounce.”

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)