just now
Key Takeaways (TL;DR):
- Bearish Structure: Both the weekly and daily charts show clear signs of an ongoing bearish trend with a classic Head and Shoulders pattern.
- High-Impact Data: Upcoming GBP and EU economic reports (CPI, PMI, Retail Sales) will act as major catalysts for the next price movement.
- Bearish Target: If price rejects the 0.87116 resistance zone, the high-probability target drops to 0.86800.
- Bullish Risk: A break above 0.87395 invalidates the bearish bias, targeting 0.87629.
What Are the Key Events than can drive EUR/GBP Trade?
Key upcoming and recent high-impact events influencing EUR/GBP include:
- 1. GBP CPI (Wed) - It shows how fast prices are rising in the country.
- 2. GBP PMI (Thu) - a report that shows the health of UK businesses.
- 3. EU & German PMI (Thu) - It measures business activity in manufacturing and services.
- 4. GBP Retail Sales (Fri) - show’s how much people are spending in the UK on goods like food, clothes, and shopping.
What is EUR/GBP Simple Technical Analysis is Showing Us?
Weekly Chart
From a simple pure technical perspective, the EUR/GBP weekly chart is showing clear signs of bearish trend. The market structure and candlestick behavior both support a downside bias, especially for traders who rely on simple support and resistance analysis.
What the chart is telling us:
- Price has formed a potentially lower high, which is a key signal of a weakening bullish structure.
- The market is rejecting a strong weekly resistance zone, indicating sellers are defending that level.
- A bearish candlestick confirmation has appeared, adding confluence to the downside move.
In simple terms, when price fails to go higher and starts turning down from resistance, it often means buyers are losing control and sellers are stepping in. This increases the probability of a downward move.
Daily Chart
On the EUR/GBP daily chart, the market continues to align with the bearish bias seen on the higher timeframe. Price action is clean and structured, showing clear signs of distribution and seller dominance.
What the daily chart is showing:
- Price is cleanly rejecting a key daily resistance zone, confirming that this level is being respected.
- A well-formed Head and Shoulders pattern is visible, a classic reversal structure.
- The pattern suggests that buyers are losing momentum, while sellers are stepping in with strength.
- Recent candles reflect bearish pressure, supporting the continuation of the move downward.
How Can We Trade Both Scenarios Using Simple EUR/GBP Technical Analysis?
The High-Probability Bearish Scenario
EUR/GBP remains bearish bias if:
- Price holds and properly rejects at strong daily resistance level 0.87116 - 0.87046.
- Properly Retest daily head and shoulder pattern
- The bearish target price and take-profit area is 0.86800.
This is the higher-probability setup since it aligns with the overall trend.
The Counter-Trend Bullish Scenario
EUR/GBP remains bullish bias if:
- Price break and retest strong resistance zone and make it as a support zone at 0.87177 - 0.87395.
- The main target price or take-profit area is 0.87629.
Note: Trading against the trend is generally much less favorable counter -trend trade generally carries lower probability and less favorable risk-to-reward conditions.
Simple Technical Advice
In a bullish trend, a higher low often signals a potential buy opportunity; price is pulling back, but buyers are still stepping in stronger than before.
In a bearish trend, a lower high can signal a potential sell opportunity; price tries to rise, but sellers keep pushing it lower.
Simply put:
- Higher low = buyers are still in control → possible buy
- Lower high = sellers are still in control → possible sell
Final Take
EUR/GBP is still bearish as long as price stays below 0.87116 - 0.87395. If resistance holds, the move toward 0.86800 is likely.
But if price breaks above 0.87395, bias shifts bullish toward 0.87629.
The key lesson here is simple.
Don’t force the direction.
Let the market show you the path!
Good trading is not about forcing, it’s about reacting with patience and clarity.
Start your live trading journey today!
• Trade Forex, indices, gold, crypto and other global markets
• Access powerful platforms including ACY, MT4, MT5, and Copy Trading tools
Move from learning simple price action to executing it in the real market with confidence!
Create an Account. Start Your Live Trading Now!
Check Out My Contents:
Beginners Path:
- Beginner Trading Steps: 4 Rules to Follow Before You Trade
- The 1% Risk Rule: The Most Common Mistakes That Quietly Destroys 90% of Traders
Mastering Popular Forex Pairs Using Simple Price Action Strategy
Ready to learn simple price action strategy? Here’s how to do it step by step:
- USD/JPY Analysis Today: Simple Trades, Clear Moves, for Beginners Using Price Action
- Simple Day Trade Price Action On EUR/USD: Why the Drop to 1.14190?
- Simple Price Action Analysis on EUR/CAD: EURCAD the Pair for the Week?
- Simple Price Action Strategy on USD/ CHF: 0.80000 the Key Ceiling for USD/CHF Sell?
- Price Action Analysis for GBPCAD Trade: A Potential Trade for This Week or Next Week?
- EUR/GBP Trading Guide: How to Spot High-Probability Setup a Week Ahead Using Simple Price Action Strategy?
- Simple Price Action Trade on CAD/JPY: 115.000 the Key Floor for CAD/JPY Buy?
- USD/JPY Price Action Outlook: Is 158.500 the Key Floor for a Potential New High?
- CAD/JPY Price Action Breakdown: We Anticipated the Move Twice to 116.500, Is Price Action Really the King?
Learn How to Trade Gold
Gold is still one of the most traded assets, here’s how to trade it with confidence:
- XAUUSD Price Action: A Beginner Buy Setup for Next Week
- How to Trade Gold Using Simple Price Action Outlook: 4500 the Key Zone for XAUUSD Buys?
- The Simplest Way to Trade XAU/USD Using Price Action Analysis: Buy and Sell Anticipation on Gold?
- XAU/USD Price Action: Will Gold Rally to $4,900 Today?
Mastering Traders Mindset
Your mindset is what separates steady growth from costly mistakes. Focus on these essentials:
Beginner Trading Roadmap
Not sure where to begin? Here’s a simple roadmap to guide you:
- Common beginner Traders Mistakes → avoid overtrading, revenge trading, and chasing the market.
- Master Traders Psychology → build discipline, patience, and emotional control
- Mastering Risk Management → learn how to have a sustainable trading.
- Master Simple Technical strategies & Indicators → especially price action, key levels, and market structure.
- Applying to Real Market → forex, crypto and indices.
By building step by step; from basics → real trading → mastering the craft, you’ll gain clarity, confidence, and steady progress without ever feeling overwhelmed.
Follow me for more daily market insights!
Ruffy Grant B. Capacio - LinkedIn
Disclaimer:
Trading forex and derivative instruments involves substantial risk and may not be suitable for all individuals. Only use funds that you are prepared to lose. It is important to understand how these markets work and the risks involved before trading, and to seek independent financial advice if needed. All market analysis and insights shared are intended for educational and informational purposes only and should not be considered financial or investment advice. April 20, 2026
