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.