EUR/GBP Price Forecasts: Showing signs of topping at 0.8750

• The Euro extends losses to 0.8720 lows on Monday after rejection at 0.8750.
• ECB's Makhlouf said on Monday that rate cuts are coming to an end.
• EUR/GBP is hovering near the neckline of a potential bearish H&S pattern, at 0.8720.,

The Euro is trading with marginal losses for the second consecutive day on Monday. The pair was rejected at 0.8750 last week and is showing signs of a deeper correction on Monday, although support at the 0.8015-0.8720 area keeps holding bears for now.

On the fundamental front, Eurozone Consumer Confidence data has failed to ease concerns about the region's economic outlook, although ECB Makhlouf's comments stating that we are "near the bottom of the rate-cutting cycle" have provided some support to the common currency.

EUR/GBP is hovering at the neckline of a potential H&S pattern

A look at the 4-hour chart shows the pair forming a bearish Head & Shoulders pattern right below a key resistance level, at the 0.8745 area, that has held bulls several times this year.

The lower high printed on the early Asian session on Monday gives fresh hopes for bears, although the 0.8705-0.8715 area, which broadly encloses the neckline of the H&S pattern and the lows of September 22 and 23 might be a tough nut to crack.

Further down, the measured target of the H&S figure is near the September 19 low of 0.8685. On the upside, immediate support is at the intra-day high of 0.8735 ahead of the September 25 high of 0.8750.