FX.co ★ EUR/GBP

Euro (EUR) demonstrates a moderate bullish consolidation versus the British Pound (GBP) on Thursday, amid a sell-off of more than 2.7% from late September highs, which resulted in the Relative Strength Index moving towards overbought territory across most timeframes. The EUR/GBP currency pair is trading at the level of 0.8390, after reaching new 17-month lows close to 0.8370 on Wednesday, with 0.8400 being an immediate resistance level. Slightly better sentiment in the market is helping EUR on Thursday, despite the high price of Oil and ongoing fears of French fiscal problems and the difficulty the government faces in solving them. However, the Pound could hold its value since the UK inflation numbers that were released on Wednesday have opened the way for the BoE to raise interest rates in its November meeting, due to positive GDP numbers seen last week. Also on Thursday, Andrew Bailey, the BoE Governor, will talk to journalists and might give more insights into the upcoming meeting. As for Europe, an ECB official and Governor of the Bank of Italy, Fabio Panetta, will appear before the publication of the preliminary Consumer Confidence report by the European Commission. EUR/GBP is trading at 0.8378, maintaining the bearish momentum as the currency pair has depreciated continuously over the past four weeks. The corrective reaction can be seen in the fact that the 4-hour RSI has recovered from oversold territory, although it is still below the 40 level. The MACD line is above zero, but overall the technical analysis indicates sellers on the way up. The immediate resistance lies in the 0.8400 area, which represents Wednesday's high. Further, the resistance levels for EUR/GBP are October 19 and 20 highs at 0.8430. The immediate support level comes in at Wednesday's lows at 0.8373, below which the bearish levels are at the May 2025 lows near 0.8355 and the April 2025 lows at 0.8320.