Key Moments
- EUR/GBP retreated after failing to clear resistance near 0.8740, trading close to two-month lows around 0.8705-0.8710.
- Technical indicators on the 4-hour chart showed mixed signals, with RSI at 41 and MACD only slightly positive, pointing to weak momentum.
- The Euro showed its strongest performance against the New Zealand Dollar in today’s broader FX market moves.
EUR/GBP Pullback in Thin Year-End Trading
An attempted rebound in EUR/GBP earlier on Monday faded quickly, with sellers emerging just below the 0.8740 area and pushing the cross sharply lower during the European session. At the time of writing, the pair is quoted around 0.8710, only a few pips above the recent two-month trough at 0.8705.
The Pound has been outperforming the Euro in a relatively quiet session, as market participants navigate thin liquidity conditions heading into the year-end. With no major macroeconomic data releases from the Eurozone or the United Kingdom, broader geopolitical concerns have taken center stage. Diminishing expectations for progress in Ukraine and rising tensions between China and Taiwan have weighed on risk sentiment and kept the Euro under pressure.
🔹 EUR/GBP Trade Setup – Dec 29, 2025 🇪🇺🇬🇧
Bearish sentiment remains in play as price trades below the dynamic fair value zone. 📉
Resistance at 0.87210 – 0.87290 is likely to cap pullbacks and keep downside pressure intact.#EURGBP #ForexAnalysis #TradeSetup #BearishBias pic.twitter.com/jRbM5OqPg7— FXANALGO (@fxanalgo) December 29, 2025
Technical Picture: Bearish Bias Persists Near Recent Lows
On the 4-hour timeframe, EUR/GBP is trading near 0.8715, keeping it in close proximity to the two-month low at 0.8707. Technical signals are sending a mixed message. The Relative Strength Index (RSI) stands at 41 after failing to reclaim the key 50 threshold, while the Moving Average Convergence Divergence (MACD) line has moved marginally into positive territory but remains near the Signal line with a nearly flat histogram, indicating subdued momentum.
On the downside, immediate support is clustered around recent and Fibonacci levels. The December 25 low at 0.8707 and the 78.6% retracement of the October-November advance at 0.8701 act as near-term cushions. Below these, attention shifts to the mid-October lows near 0.8670 and the October 8 low at 0.8655.
Upside moves have so far stalled around 0.8740, which corresponds to the October 18 low and continues to cap recovery attempts, preserving the broader bearish tone. A sustained break above this barrier would be needed to target the December 19 high at 0.8775 and then the more substantial resistance band around 0.8800.
(The technical analysis of this story was written with the help of an AI tool)
Euro Performance Against Major Currencies Today
The table below summarizes today’s percentage changes of the Euro against a selection of major currencies. Among these pairs, the Euro registered its strongest relative performance versus the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.07% | 0.14% | -0.06% | 0.18% | 0.28% | 0.59% | 0.12% | |
| EUR | -0.07% | 0.07% | -0.11% | 0.12% | 0.22% | 0.52% | 0.04% | |
| GBP | -0.14% | -0.07% | -0.19% | 0.05% | 0.15% | 0.45% | -0.03% | |
| JPY | 0.06% | 0.11% | 0.19% | 0.22% | 0.35% | 0.64% | 0.11% | |
| CAD | -0.18% | -0.12% | -0.05% | -0.22% | 0.10% | 0.42% | -0.07% | |
| AUD | -0.28% | -0.22% | -0.15% | -0.35% | -0.10% | 0.30% | -0.18% | |
| NZD | -0.59% | -0.52% | -0.45% | -0.64% | -0.42% | -0.30% | -0.48% | |
| CHF | -0.12% | -0.04% | 0.03% | -0.11% | 0.07% | 0.18% | 0.48% |
How to Read the FX Heat Map
The heat map reports percentage changes between major currencies. The base currency is shown in the left-hand column and the quote currency along the top row. For instance, selecting the Euro in the left column and moving horizontally to the US Dollar column displays the percentage change for EUR (base)/USD (quote).
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