EUR/GBP rebounded on Tuesday from a multi-month trough, its lowest level since 5 June 2025, as the US dollar and crude oil softened and German inflation rose further in September. The move also reflected profit taking after an uninterrupted two-week decline, with technical studies showing an oversold daily RSI and a stretched 14-day momentum reading at its weakest since early May 2025. Prices had already broken below Fibonacci support at 0.8467, the 61.8% retracement of the 0.8222/0.8865 advance, shaping near-term trading parameters.
Technical Analysis and Immediate Outlook
Despite the bounce, daily indicators remained bearish, suggesting any corrective recovery could be capped. On the charts, the falling 10-day moving average at 0.8480 was flagged as resistance, ahead of 0.8530, which aligns with the 20-day moving average and the 17 August low, while resistance levels also include 0.8543. Support was marked at 0.8428, then 0.8373, the 76.4% Fibonacci retracement, and 0.8355, the 29 May 2025 low, with 0.8300 also cited.
Broader Context: European Fundamental Concerns
France’s fiscal turbulence was referenced alongside broader EU strains, including the energy situation and wars in Ukraine and the Middle East.
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