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The Euro continues to climb against the Pound, shrugging off disappointing Eurozone employment data.
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Dovish remarks from BoE Governor Bailey and weak UK manufacturing figures weighed on the GBP on Tuesday.
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EUR/GBP remains in a bullish trend, eyeing the 0.8620 resistance level as the next potential target.
The Euro continues to strengthen against the British Pound for the fourth consecutive session on Wednesday, defying weak Eurozone employment figures. The pair has pushed higher, reaching the 0.8600 zone, with bulls now targeting the 0.8620 resistance area.
Despite recent dovish comments from European Central Bank (ECB) officials—highlighting concerns about persistently low inflation—the euro remains resilient. Similarly, dovish tones from Bank of England (BoE) Governor Andrew Bailey, paired with lackluster UK manufacturing data, have put additional pressure on the Pound.
Technical Outlook: Bullish Momentum Intact
EUR/GBP appears to be advancing within the fifth wave of an Elliott Wave bullish cycle that began from the late-May lows. The limited pullbacks support the bullish bias, with the 0.8615–0.8620 zone—lows from April 16 to 22—emerging as a near-term target.
A sustained break above this region would expose the April 13 peak at 0.8695, paving the way for a further climb toward the April 11 high at 0.8735.
On the downside, the former resistance zone at 0.8560–0.8575 (June 18 and 23 highs) now serves as key support. A drop below this area would open the door to the June 25 and 27 lows near 0.8515. A decisive break beneath 0.8515 would invalidate the bullish scenario and shift focus back toward 0.8450, marked by the May 21 and June 2 highs.
