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EUR/GBP Price Analysis: Euro is coming under pressure below 0.8700

  • EUR/GBP drifts lower for the third consecutive day to test support in the 0.8685 area.
  • Hopes of new peace talks between the US and Iran are feeding a mild risk appetite.
  • ECB's Lagarde warns that the Eurozone's economy is approaching adverse scenarios.

The Euro (EUR) posts marginal gains against the British Pound (GBP) on Wednesday and extends losses for the third consecutive day, testing April lows at the 0.8685 area, which, so far, has held the bears.

The Pound is keeping the upper hand amid a moderate risk-averse sentiment this week. Hopes of a new round of negotiations between the US and Iran were confirmed late Tuesday by US President Trump, who suggested in a New York Post Interview that peace talks might resume in Pakistan in the next two days.

Also on Tuesday, comments from European Central Bank (ECB) President Christine Lagarde, warning that the Eurozone Economy is approaching adverse scenarios, amid the energy shock caused by Iran’s conflict, added pressure on the Euro.

EUR/GBP Chart Analysis

Technical Analysis

The four-hour chart shows the EUR/GBP under growing bearish pressure after breaching the ascending trendline support from mid-March lows. The Relative Strength Index (RSI) slips toward the mid-30s, the Moving Average Convergence Divergence (MACD) line holds below zero and is barely negative, altogether pointing to a weakening momentum.

Bears remain focused on the April 8 low, in the area of 0.8685, which would open the door to a deeper correction. In that case, the 61.8% Fibonacci retracement of the late March-early April rally, at 0.8660, and the March 24 and 26 lows, in the 0.8637 area, emerge as the next targets.

On the topside, previous support at 0.8696 (April 13 low) and the reverse trendline, now around 0.8710, are likely to test potential bullish reactions, ahead of the 0.8720 area (April 12 high).

(The technical analysis of this story was written with the help of an AI tool.)

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Euro.

USDEURGBPJPYCADAUDNZDCHF
USD0.06%0.04%0.02%0.00%-0.32%-0.05%-0.00%
EUR-0.06%-0.02%-0.02%-0.06%-0.30%-0.11%-0.06%
GBP-0.04%0.02%-0.02%0.00%-0.26%-0.08%-0.04%
JPY-0.02%0.02%0.02%-0.01%-0.27%-0.10%-0.04%
CAD-0.00%0.06%-0.00%0.01%-0.25%-0.06%-0.02%
AUD0.32%0.30%0.26%0.27%0.25%0.19%0.23%
NZD0.05%0.11%0.08%0.10%0.06%-0.19%0.04%
CHF0.00%0.06%0.04%0.04%0.02%-0.23%-0.04%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Author

Guillermo Alcala

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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