Insights 
VT 
The Euro fell below 0.8770 after failing to hold gains beyond 0.8785 due to a positive UK manufacturing PMI report. This candlestick pattern, called the evening star, suggests a shift in market trends. As of Monday, Euro struggles to maintain its gains against the British Pound, with technical indicators showing a potential downward trend.
UK’s October manufacturing PMI showed a revised reading of 49.7, an improvement but still in contraction. In contrast, the Eurozone’s manufacturing PMI confirmed at 50.0, a slight growth from 49.8 in September. Germany’s PMI also recorded a modest rise, reaching 49.6 in October from September’s 49.5.
Bearish Candlestick Patterns
Charts reveal a bearish evening star pattern on the daily candlestick, indicating an impending trend reversal. The Euro remains above the mid-0.8700 range, but the RSI suggests weakening momentum. The Euro may find support near previous resistance at 0.8725, and key support zones are between 0.8655 and 0.8665. Bullish efforts appear restrained below 0.8785, while further resistance lies near 0.8815. The Euro managed minor gains against the Swiss Franc, making it the strongest daily performance.
The currency heat map displays varying strengths among major currencies, pointing towards mixed movements in the forex market. The Euro’s interaction with the US Dollar and other currencies is illustrated with percentage changes.
Given the market close on November 3rd, 2025, the bearish technical signals on the EUR/GBP chart are becoming hard to ignore. The evening star pattern we observed last week often signals a top, suggesting the Euro’s recent strength against the Pound may be over. Therefore, strategies that benefit from a falling EUR/GBP rate should be considered for the coming weeks.
Potential Strategies and Economic Indicators
This technical view is supported by strengthening UK economic data, which we saw with the revised manufacturing PMI figures from October 2025. Adding to this, recent ONS data showed UK services inflation remains elevated at 4.2%, prompting the Bank of England to maintain a hawkish tone. A determined central bank is typically supportive of its currency, giving the Pound a fundamental edge.
On the other side of the trade, the Eurozone is showing signs of economic softness, which limits the European Central Bank’s ability to be aggressive. We saw this with last month’s disappointing German industrial production figures, which contracted by 0.5% according to Destatis. This makes the ECB’s recent cautious tone on economic growth entirely understandable.
For options traders, this environment could make buying put options on EUR/GBP attractive, targeting a move towards the 0.8700 support level. Looking back at the price action in mid-2024, we saw a similar setup where the pair broke below key support after a period of consolidation. Implied volatility in the pair has also risen to 6.8% from 5.5% a month ago, suggesting the market is pricing in a bigger move.
