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EUR/GBP Faces Downside Risks from Head and Shoulders Pattern: Societe Generale Warns
The EUR/GBP currency pair faces notable downside risks. A head and shoulders pattern signals a potential bearish reversal. Societe Generale’s analysis highlights this technical setup. Traders now watch key support levels closely.
EUR/GBP Head and Shoulders Pattern: A Bearish Signal
Societe Generale identifies a head and shoulders pattern on the EUR/GBP chart. This formation typically suggests a trend reversal from bullish to bearish. The pattern consists of three peaks. The middle peak (the head) is the highest. The two outer peaks (shoulders) are lower and roughly equal. The neckline connects the lows between the peaks.
A break below the neckline confirms the pattern. This action signals further downside. Societe Generale warns that the EUR/GBP pair now trades near this critical level. The risk of a breakdown remains elevated.
Key levels to watch include the neckline around 0.8500. A decisive close below this level could trigger a move toward 0.8350. The next support sits at 0.8200. These targets align with the pattern’s measured move.
