Elliott Wave analysis for the EUR/GBP pair. Exploring the bearish outlook targeting 0.85502, supported by 1D and 4H chart structures and key Fibonacci levels.
As of April 2026, the EUR/GBP pair has reached a critical technical juncture. By synthesizing the large-scale corrective cycles seen on the daily charts with the short-term sub-structures on the 4-hour timeframe, we can identify a compelling bearish roadmap. This article examines the technical justifications for the anticipated downward impulse.
Technical Analysis and Wave Counts
On the Daily (1D) period, the pair is clearly navigating within a broad Wave (Z) of a complex correction. This structure suggests that the pair maintains the potential to test significantly lower levels in the medium term before finding a definitive bottom.
On the 4-Hour (4H) chart, following a sharp decline labeled as wave (i), the subsequent relief rally or wave (ii) has reached the 0.87298 level. This coincides with the 0.786 Fibonacci retracement, where technical indicators are now signaling "exhaustion," suggesting the correction is nearing its end.
Projected Scenario and Key Targets
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Bearish Confirmation: As long as the price remains capped under the 0.873 resistance, the primary expectation is a reversal into a powerful wave (iii) impulse.
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Intermediate Target: The first major support to watch is 0.86105 (0.5 Fibonacci level).
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Final Destination: The ultimate target for this cycle is projected at 0.85502, which aligns with the 0.618 Fibonacci extension of the larger structure.
Risk Management
While the bearish bias is strong, a sustained daily close above the 0.873 resistance zone would invalidate the immediate count and require a revision of the wave structure.
Conclusion
The alignment between the higher-timeframe "Big Picture" and the lower-timeframe sub-waves points toward an increasing appetite for sellers in EUR/GBP. According to Elliott Wave principles, the completion of this wave (ii) correction should trigger a rapid and sharp impulsive move to the downside.