EUR/GBP Holds Below Key Ceiling as Bullish Momentum Fades

Key Moments:

EUR/GBP traded near 0.8720 after rebounding from support at 0.8700, having gained nearly 1% over the last three weeks.
Technical signals point to softening upside momentum, with MACD slipping below zero even as RSI remains above its midpoint.
The Euro showed broad strength on the day, particularly against the New Zealand Dollar, while war-driven risk aversion supported the US Dollar.

EUR/GBP Stabilizes After Pullback From One-Month High

EUR/GBP was steady around 0.8720 on Friday, consolidating after a bounce from the 0.8700 support area. The cross has advanced nearly 1% over the past three weeks, even as broader risk-off sentiment has persisted. However, the Euro appears to need a fresh catalyst to overcome resistance near 0.8740.

The pair reversed lower from one-month highs around 0.8740 and found buyers above 0.8700 earlier in the week. Since then, price action has stalled near the midpoint of the recent trading band, around 0.8720, with both direction and conviction lacking.

Technical readings indicate that bullish momentum has been losing strength, and lighter market participation suggests that a period of consolidation is the most probable outcome for Friday’s session.

Macro Backdrop: Euro Supported by Data, Both Currencies Pressured by Risk Aversion

The Euro (EUR) remains set for a weekly gain of nearly 0.5% and is almost 1% higher over the past three weeks. Risk-averse sentiment tied to the war in Iran has weighed on both the Euro and the British Pound (GBP) against the safe-haven US Dollar (USD).

Even so, the single currency has drawn some support from stronger manufacturing activity and a moderate rise in inflation in the Eurozone earlier in the week. In contrast, UK manufacturing PMI data did not convince investors, limiting support for the Pound.

Technical Outlook: Mild Bullish Bias, But Momentum Softens

EUR/GBP’s short-term structure remains slightly tilted to the upside, but indicators highlight a loss of momentum. On the 4-hour chart, the Relative Strength Index (RSI) stands at 58, holding above the neutral 50 line. At the same time, the Moving Average Convergence Divergence (MACD) indicator has slipped marginally below the zero line, and the MACD line has crossed under the Signal line, a configuration viewed as bearish.

On the downside, sellers would need to push the pair below this week’s lows at 0.8705 (Wednesday) and 0.8676 (Tuesday) to significantly damage the near-term bullish setup. A break under those levels would open the door to the 0.8630-0.8635 region, which acted as support on March 23, 24, and 26.

On the upside, buyers are likely to require an additional bullish trigger to clear resistance around 0.8740, which corresponds to the highs from March 3 and April 1. A sustained move above that barrier would shift focus toward the 0.8790-0.8800 zone, an area that repeatedly capped advances in December and early March.

(The technical analysis of this story was written with the help of an AI tool.)

Euro Performance Against Major Currencies

The table below shows the Euro’s (EUR) percentage changes versus major counterparts today. The Euro registered its strongest performance against the New Zealand Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.02%	-0.11%	0.00%	0.01%	-0.12%	0.13%	-0.08%
EUR	0.02%		-0.06%	0.02%	0.03%	0.01%	0.13%	-0.06%
GBP	0.11%	0.06%		0.11%	0.08%	0.11%	0.20%	-0.00%
JPY	0.00%	-0.02%	-0.11%		0.00%	-0.01%	0.10%	-0.11%
CAD	-0.01%	-0.03%	-0.08%	-0.00%		-0.01%	0.12%	-0.09%
AUD	0.12%	-0.01%	-0.11%	0.01%	0.00%		0.12%	-0.09%
NZD	-0.13%	-0.13%	-0.20%	-0.10%	-0.12%	-0.12%		-0.21%
CHF	0.08%	0.06%	0.00%	0.11%	0.09%	0.09%	0.21%

How to Read the Currency Heat Map

The heat map reflects percentage changes among major currencies. The base currency is selected from the left-hand column, and the quote currency from the top row. For example, choosing the Euro from the left column and moving horizontally to the US Dollar cell shows the percentage change for EUR (base)/USD (quote).