Societe Generale’s Kenneth Broux and colleagues note that EUR/GBP has formed a lower high near 0.8740 and is struggling above its 200‑day moving average, with price action resembling a Head and Shoulders pattern. They highlight 0.8610 as key support, with potential downside projections to 0.8560/0.8535 and 0.8475, while a move above 0.8740 would negate the bearish setup.

Head and Shoulders points to weakness

"EUR/GBP carved out a lower high near 0.8740 earlier in April and has struggled to maintain above the 200‑DMA."

"Price action has shaped a pattern resembling a Head and Shoulders, which signals potential downside."

"The neckline around 0.8610 is a key support."

"A break below this could lead to a deeper pullback toward projections at 0.8560/0.8535, followed by 0.8475."

"Overcoming the recent pivot high at 0.8740 would be crucial to negate the formation."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)