EUR/GBP Dips on Diverging Growth Outlooks, Watch for Technical Signals
The Euro (EUR) weakens against the Pound Sterling (GBP) as the European Central Bank (ECB) downgrades Eurozone growth forecasts for 2024. Conversely, the UK's Chancellor raises UK growth projections, bolstering the GBP.
While the long-term EUR/GBP outlook remains sideways, recent technical developments suggest a potential bullish reversal:
- Bullish MACD Divergence: MACD indicator hints at a possible recovery despite recent lows.
- Inverse Head and Shoulders Pattern: A potential bottoming pattern could signal a mid-term reversal if confirmed.
- Key Resistance: A break above the neckline (0.8750) of the Inverse H&S pattern could trigger a rise towards the 0.8615 resistance zone, or potentially higher.