The EUR/GBP pair is forecasted to drop, with Elliott Wave analysis pointing to a decline from the “equal legs” area. This technical indicator, widely used by market analysts, suggests the pair has reached a resistance zone, heightening the probability of downward movement. The equal legs structure often signals the conclusion of corrective waves in Elliott Wave theory, indicating a bearish phase may follow.
Source – FXStreet
Traders closely monitoring the pair see this development as a potential setup for short positions. The analysis aligns with broader market sentiment, where economic uncertainties and diverging monetary policies between the Eurozone and the UK continue to influence currency movements. As the pair struggles to break higher, market participants brace for volatility, with many preparing for a test of lower support levels in the coming sessions.
