EURGBP fell to its lowest level since late May 2025 on Wednesday as the euro weakened and the pound gained. Daily studies stay firmly bearish, but a strongly oversold RSI suggests sellers may pause.
EURGBP continues to trend lower and hit its lowest since late May 2025 on Wednesday. The pair printed a new low at 0.8371 before bouncing.
French 10-year bond yields rose to the highest in over four years, and the yield spread between France and Germany stretched further, which pressured the euro. Meanwhile, UK inflation came in hotter than expected, which lifted the pound.
Firmly bearish daily studies contribute to a negative outlook. Still, the strongly oversold RSI suggests bears may take a breather after finding a footing at 0.8373 Fibo support, the 76.4% retracement of the 0.8222/0.8865 Dec 2025/Nov 2025 ascent.
Near-term price action remains below the initial barrier at 0.8400, a round figure. Any extended upticks would ideally be capped by the falling 10DMA at 0.8436 and the former low of July 15 at 0.8454, which would mark a healthy correction before larger bears regain control.
Resistance sits at 0.8400, 0.8436, 0.8454 and 0.8465, while support levels are 0.8373, 0.8355, 0.8315 and 0.8300.
Source: ActionForex
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