Societe Generale strategists report that the EUR/GBP currency pair has continued its downward trajectory after failing to surpass the 0.8610 level, which is associated with the February and March troughs [1]. The pair has now slipped below the July lows, reinforcing the prevailing downside momentum for the Euro against the British Pound [1]. According to the strategists, if EUR/GBP is unable to reclaim last week's high at 0.8500, the decline could extend further, with the next projected support levels at 0.8405 and 0.8370/0.8355 [1]. This technical analysis suggests that the British Pound is building upside momentum relative to the Euro, and the inability of the cross to recover key resistance levels may lead to further weakness in the Euro [1]. No specific market reactions or analyst opinions beyond these technical projections are provided in the source [1].
CONCLUSION
Societe Generale highlights that the British Pound is strengthening against the Euro, with EUR/GBP facing continued downside pressure. Failure to reclaim the 0.8500 level could see the pair fall towards 0.8405 and potentially lower, signaling further gains for the Pound if current trends persist.