EUR/GBP Short Setup – Technical Breakdown Aligns with Dovish ECBTechnical Insight:
EUR/GBP is once again rejecting a major higher timeframe resistance zone, showing clear signs of bearish pressure. Price action has decisively broken below the ascending trendline that held since April 2, confirming a market structure shift. The break adds to confluence as momentum turns in favor of sellers.
Fundamental Backdrop:
This week’s European Central Bank (ECB) meeting is highly anticipated, with increasing speculation that policymakers will lean dovish—potentially signaling readiness to cut rates as early as June. Recent data from the Eurozone (including sluggish PMI prints and easing inflation figures) has further pressured the euro, making it vulnerable ahead of the announcement.
In contrast, the Bank of England remains cautious on rate cuts amid persistent wage and services inflation, which may keep GBP relatively supported in the near term.
Key Takeaways:
Bearish market structure confirmed with trendline break
HTF resistance still holding firm (0.8737–0.8743)
ECB likely dovish, weakening euro fundamentals
BoE more hawkish stance strengthens GBP outlook
Risk-reward ratio remains favorable with downside targets around 0.8350–0.8320
