EUR/GBP Exchange Rate Hits 29-Month Low

FXOpen

According to today’s daily chart of EUR/GBP:

→ The rate is around £0.832 per euro – the lowest since April 2022.

→ The RSI indicator has dropped into oversold territory.

Yesterday, the EUR/GBP rate fell by 0.71%, driven by bearish sentiment following the release of PMI indices, which indicated a slowdown in the Eurozone economy.

According to Forex Factory:

French Flash Manufacturing PMI: actual = 44.0, expected = 44.3, previous = 43.9;

French Flash Services PMI: actual = 48.3, expected = 53.0, previous = 55.0;

German Flash Manufacturing PMI: actual = 40.3, expected = 42.4, previous = 42.4;

German Flash Services PMI: actual = 50.6, expected = 51.1, previous = 51.2.

Meanwhile, PMI indices for the UK remain above 50, signalling economic growth.

Flash Manufacturing PMI: actual = 51.5, expected = 52.3, previous = 52.5;

Flash Services PMI: actual = 52.8, expected = 53.5, previous = 53.7.

Technical analysis of the EUR/GBP chart today shows the price moving within a descending channel (marked in red).

In September, the price bounced off the £0.840 level, which had acted as support since June. The price movement formed an arc (shown by an arrow), suggesting that:

  • Demand is weakening.
  • The median line of the red channel is acting as resistance.

If bears maintain control of the market, the EUR/GBP rate could fall towards the lower boundary of the red channel.

However, if bulls attempt to recover, the price may face strong resistance at the £0.840 level.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

Indices

Hang Seng Index (HSI) Drops Nearly 10% Today

As shown on the Hang Seng Index chart (Hong Kong 50 on FXOpen), prices have fallen by almost 10% since trading began today, and the session is not over yet.

According to Reuters, bearish sentiment was driven by uncertain statements

Forex Analysis

XBR/USD Analysis: Brent Crude Price Fails to Hold Above $80

As shown on the XBR/USD chart, Brent crude oil prices surged by over 8.5% last week — marking the largest increase in 2024, driven by escalating tensions in the Middle East.

Although oil prices continued to climb earlier this

Fibonacci Retracements in Action: Practical Applications for Traders
Trader’s Tools

Fibonacci Retracements in Action: Practical Applications for Traders

If you’re wondering how to trade with Fibonacci retracements, you’re in the right place. In this article, we will break down why traders use retracements, their unique features, and how you can apply them in your trading strategies.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.