The Euro (EUR) continued to come under pressure against the British Pound (GBP) on Wednesday, extending its losses for a third consecutive day and testing the April lows around the 0.8685 level, which has so far acted as support for the currency pair [1]. The Pound maintained its strength amid a moderately risk-averse market sentiment this week [1].
Market dynamics were influenced by geopolitical developments, including confirmation from US President Trump of potential new negotiations between the US and Iran, which may take place in Pakistan within the next two days [1]. Additionally, comments from European Central Bank (ECB) President Christine Lagarde, who warned that the Eurozone economy is approaching adverse scenarios due to the energy shock caused by Iran's conflict, added further pressure on the Euro [1].
Technical analysis indicates that EUR/GBP is experiencing growing bearish momentum after breaking below the ascending trendline support established since mid-March. The Relative Strength Index (RSI) has slipped toward the mid-30s, and the Moving Average Convergence Divergence (MACD) line remains below zero, both signaling weakening momentum for the Euro [1]. Key support levels to watch include the April 8 low at 0.8685, with further downside targets at the 61.8% Fibonacci retracement of the late March-early April rally (0.8660) and the March 24 and 26 lows (0.8637) [1]. On the upside, resistance is seen at 0.8696 (April 13 low), 0.8710 (reverse trendline), and 0.8720 (April 12 high) [1].
According to the latest percentage change data, the British Pound was the strongest against the Euro among major currencies today, reflecting the ongoing pressure on the Euro [1].
CONCLUSION
The Euro remains under sustained pressure against the Pound, driven by risk aversion, geopolitical tensions, and concerns over the Eurozone economy. Technical indicators and recent price action suggest further downside risks for EUR/GBP unless key support levels hold. Market participants are closely watching upcoming geopolitical developments and ECB commentary for further direction.