EUR/GBP Market UpdateEuro / British PoundEASYMARKETS:EURGBPeasyMarketsEUR/GBP has recovered sharply from the 0.8490 demand zone, where buying interest emerged after the aggressive sell-off seen earlier this month. The recovery has been orderly, with higher lows beginning to develop, suggesting short-term momentum has shifted in favour of the bulls. Price is now trading into a significant 0.8540–0.8600 supply zone. This area previously acted as support before breaking lower, making it a high-probability region for sellers to re-enter the market. The reaction here will likely determine the pair's next directional move. A sustained close above 0.8600 would indicate that buyers have absorbed overhead supply, opening the path for further upside and signalling a broader bullish reversal. Until then, the current rally should be viewed as a recovery within a larger range rather than a confirmed trend change. Conversely, failure to establish acceptance above current levels could trigger another rotation back toward 0.8500, where demand has proven resilient. A decisive break beneath that floor would invalidate the recent recovery and shift the short-term bias back to the downside. From a macro perspective, traders will remain focused on evolving ECB and Bank of England policy expectations, incoming inflation data, and broader European growth sentiment, all of which are likely to influence relative strength between the euro and the pound. Bias: Neutral to cautiously bullish while price remains above 0.8500, with confirmation only on a sustained break and close above 0.8600.