EUR/GBP extended its slide on Wednesday and was set to round off a nearly 1.6% fall over a nine-day losing run, after a rebound attempt met supply near 0.8500. The pair was pushed back towards 0.8475 and last traded around 0.8473, leaving the 16-month low at 0.8455 in view. France’s 10-year OAT yield dropped 17 basis points on Tuesday after Marine Le Pen set out plans to cut government costs by 140 billion over five years, which briefly steadied euro crosses, but the move faded.
Geopolitical Drivers and Economic Indicators
Geopolitics then returned to the fore as fresh Houthi attacks in Saudi Arabia lifted oil, with Brent rising through $100 and adding pressure to the Eurozone outlook, while a positive surprise in German industrial production drew little reaction.
Technical Analysis and Key Levels
Technically, bears retained control from late-September highs: MACD stayed marginally positive yet the 14-period RSI at 30.8 hovered just above oversold. Tuesday’s rejection at 0.8493 keeps focus on 0.8455, with a next downside marker near 0.8410; on a sustained break above 0.8500, attention shifts to 0.8527 and resistance around 0.8550.
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