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EUR/GBP Price Analysis: Euro stalls below the 0.8740 resistance area

  • EUR/GBP flatlines around 0.8720 on Friday after bouncing from 0.8700 support.
  • The pair has rallied nearly 1% over the last three weeks, despite the risk-off sentiment.
  • The Euro is likely to require an additional impulse to breach resistance at 0.8740.

EUR/GBP’s reversal from one-month highs at 0.8740 found support above 0.8700 earlier this week, before stalling halfway through the last few days’ range around 0.8720. Technical indicators show waning bullish momentum, while thinned market volumes suggest that further consolidation is the most likely outcome on Friday.

The Euro (EUR) remains on track for a nearly 0.5% weekly gain and is nearly 1% up over the last three weeks. The risk-averse sentiment stemming from the war in Iran has been weighing both currencies against the safe-haven US Dollar (USD). Still, the positive manufacturing activity and the moderate uptick in inflation seen in the Eurozone earlier this week have provided some support to the Euro (EUR), while UK manufacturing PMI failed to convince investors.

Chart Analysis EUR/GBP

Technical Analysis

EUR/GBP's near-term bias remains mildly bullish, although technical indicators point to a weakening momentum. The 4-hour Relative Strength Index at 58 stays above its midline, but the Moving Average Convergence Divergence (MACD) indicator slips marginally below the zero line, and the MACD line has crossed below the Signal line, which is a bearish sign.

Bears will have to breach Wednesday's and Tuesday's lows, at 0.8705 and 0.8676, respectively, to undermine the near-term bullish structure and expose the 0.8630-08635 area, which provided support to the pair on March 23, 24, and 26.

On the upside, bulls are likely to require additional impulse to break resistance at the 0.8740 area (March 3 and April 1 highs), and shift the focus to the key area between 0.8790 and 0.8800, which capped bulls several times in December and early March

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

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.02%-0.11%0.00%0.01%-0.12%0.13%-0.08%
EUR0.02%-0.06%0.02%0.03%0.01%0.13%-0.06%
GBP0.11%0.06%0.11%0.08%0.11%0.20%-0.00%
JPY0.00%-0.02%-0.11%0.00%-0.01%0.10%-0.11%
CAD-0.01%-0.03%-0.08%-0.00%-0.01%0.12%-0.09%
AUD0.12%-0.01%-0.11%0.01%0.00%0.12%-0.09%
NZD-0.13%-0.13%-0.20%-0.10%-0.12%-0.12%-0.21%
CHF0.08%0.06%0.00%0.11%0.09%0.09%0.21%

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 Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (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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