GBP: EUR/GBP remains capped below resistance - Societe Generale

EUR/GBP is trading around 0.85746, within the narrow range outlined by Societe Generale. Analysts led by Kenneth Broux note that after forming a cyclical low near 0.8450 in July, the pair rebounded strongly, but recovery momentum stalled around 0.8585. It is now oscillating between short-term support at 0.8530 and key resistance at 0.8585/0.8610.

**Recovery stalls, upper range resistance clear**

SocGen highlights the 0.8585/0.8610 zone as the key technical resistance to watch. Multiple attempts to break higher have failed, indicating heavy overhead supply. Further up, the 200-day moving average around 0.8660/0.8690 caps any additional upside, suggesting that even a break above the upper range would face sustainability challenges.

**Downside support and potential pullback risks**

On the support side, 0.8530 acts as near-term support. A loss of this level could see the pair retest the July low near 0.8450. SocGen also notes that after failing to break above 0.8735/0.8765 resistance earlier, the pair corrected, with 0.8590 support and the 50-day moving average holding initially. However, the overall trend remains constrained by layered resistance above, limiting rebound potential.

**Short-term outlook: range trading dominates**

Overall, EUR/GBP lacks a clear directional breakout signal. The narrow range of 0.8530 to 0.8585/0.8610 is likely to persist in the near term. Market participants are awaiting more decisive fundamental catalysts to break the impasse. Until then, range-bound trading—buying dips and selling rallies—appears the more pragmatic approach. SocGen cautions that unless the pair can reclaim 0.8585, downside pressure will continue to build.