EURGBP Stalls Near Key Resistance Levels: Societe Generale

The British Pound has continued to face downward pressure against the Euro, as Societe Generale analysts note. The EUR/GBP pair rebounded sharply after hitting an interim low near 0.8450 in July, but its recovery has stalled around 0.8585. Currently, the pair is consolidating within a narrow range, with key resistance levels at 0.8585/0.8610 and the 200-DMA near 0.8660/0.8690 acting as an upper limit to further upside.

The recovery has not yet gained momentum beyond the 0.8585 level, which is also a graphical representation of the July high at 0.8588. Analysts suggest that breaking above this resistance would confirm a broader recovery trend towards the low of May and potentially even the 200-DMA. Meanwhile, the lower boundary of the recent range at 0.8530 serves as short-term support.

Societe Generale's analysts emphasize that a break above the current resistance level is crucial for the pair to move further upward.