EUR/GBP: Monthly Resistance Test, Rising Risk of Pullback

EUR/GBP has recently shown a strong bullish acceleration, breaking decisively above the consolidation zone between 0.8285 and 0.8480, and reaching the monthly resistance area around 0.8580–0.8600. This zone, highlighted on the chart with a marked red and grey band, represents a historically significant selling area—already tested earlier this month and revisited again today. The strong upward expansion has been accompanied by an RSI nearing extreme levels, indicating a possible and imminent loss of bullish momentum.

From a technical perspective, the current setup reveals an active supply zone that could trigger a pullback, especially if the price fails to close decisively above the weekly and monthly highs. Potential profit-taking may drive the pair back toward the intermediate balance zone around 0.8450–0.8480, which would serve as the first dynamic support level. Only a clear and confirmed breakout above 0.8600 would open the door for further bullish continuation, with targets toward 0.8650 and beyond.

Strategically, caution is advised at this stage: traders already long may consider scaling out near resistance, while those eyeing short entries could find opportunities on reversal signals or confirmation of rejection from the current zone.