EUR/GBP: Short Play as Bearish Momentum Builds Below Key Resistance

Technical Analysis & Market Observation

Alright team, let's dive into EUR/GBP. The pair has been in a clear sideways trend for a while now, but I'm seeing a potential short opportunity developing here on the intraday charts. Currently, EUR/GBP is trading around 0.85566, having seen a -0.27% drop over the last 24 hours, which is compelling data indicating recent bearish pressure.
Looking at the daily range, we've seen price fluctuate between 0.85216 and 0.85917. What's catching my eye is the consistent rejection of the 0.8592 resistance level, and more broadly, the inability to challenge 0.86. This suggests that institutional order flow is pushing price lower from these higher boundaries of the sideways channel. My analysis indicates that the recent pushes higher are failing to hold, confirming that sellers are stepping in around these zones.

Intraday Short Setup

Based on this technical read, I'm looking for a short entry on EUR/GBP at 0.85678. This level provides a good risk/reward profile, catching a retracement higher before the next leg down.
My stop loss is placed firmly at 0.86239. This