Key Moments
- EUR/GBP recovery from 0.8620 has stalled beneath the 0.8640 resistance zone, leaving the 0.8611 year-to-date low exposed.
- The British Pound is outperforming the Euro amid subdued risk appetite and heightened attention on developments in the Strait of Hormuz.
- Technical signals on the 4-hour chart remain bearish, with support targets at 0.8611 and 0.8596 while resistance caps the upside near 0.8640, 0.8655, and 0.8685.
Euro Starts Week on Weak Foot Against Pound
The Euro (EUR) began the week under selling pressure versus the British Pound (GBP), with EUR/GBP posting modest declines. A rebound attempt from the 0.8620 area on Friday failed to secure a move back above a prior support band around 0.8640, keeping the year-to-date low at 0.8611 vulnerable.
The Pound is showing a marginal performance edge over the Euro as trading gets underway in a risk-averse environment. Market participants are closely monitoring the situation in the Strait of Hormuz after US President Donald Trump referenced a military operation aimed at freeing vessels of neutral nations stranded in the key shipping lane, without offering additional specifics.
The UK data calendar is relatively quiet on Monday. In the Eurozone, the final reading of April’s HCOB Manufacturing Purchasing Managers Index (PMI) is anticipated to confirm a moderate expansion in factory activity. In addition, the Sentix Index is set to provide a snapshot of investor sentiment ahead of scheduled remarks from several European Central Bank (ECB) officials.
Technical Outlook: Resistance at 0.8640 Caps Euro Gains
From a technical perspective, EUR/GBP remains constrained beneath a confluence of resistance that includes a descending trendline drawn from late March highs and the 0.8630-0.8640 band. This area previously acted as a support zone for sellers on March 23, 24, and 26 and is now limiting bullish follow-through.
On the 4-hour chart, technical indicators are aligned with a bearish bias. The Relative Strength Index (RSI) is hovering near 38, pointing to lackluster buying interest rather than an oversold condition. At the same time, the Moving Average Convergence Divergence (MACD) histogram is oscillating around the zero line, indicating subdued momentum.
The inability to push the recovery beyond 0.8640 keeps downside levels in focus. Sellers are eyeing the 2026 low at 0.8611, which also marked the March 19 trough. A break below that level would expose the next area of support at the August 2025 low of 0.8596. On the upside, a decisive move and confirmation above 0.8640 would shift attention toward the April 27 and 28 lows around 0.8655, followed by the April 24 peak near 0.8685.
Euro Performance Versus Major Currencies
In broader FX trading, the Euro’s moves against other major currencies are summarized below. According to the daily percentage changes, the Euro showed its strongest relative performance against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | — | -0.06% | -0.01% | -0.09% | 0.06% | 0.07% | -0.13% | -0.05% |
| EUR | 0.06% | — | 0.01% | -0.04% | 0.12% | 0.14% | -0.06% | -0.01% |
| GBP | 0.00% | -0.01% | — | -0.06% | 0.11% | 0.12% | -0.11% | -0.01% |
| JPY | 0.09% | 0.04% | 0.06% | — | 0.12% | 0.11% | -0.10% | -0.02% |
| CAD | -0.06% | -0.12% | -0.11% | -0.12% | — | -0.01% | -0.22% | -0.12% |
| AUD | -0.07% | -0.14% | -0.12% | -0.11% | 0.00% | — | -0.24% | -0.14% |
| NZD | 0.13% | 0.06% | 0.11% | 0.10% | 0.22% | 0.24% | — | 0.09% |
| CHF | 0.05% | 0.00% | 0.00% | 0.02% | 0.12% | 0.14% | -0.09% | — |
The heat map shows the percentage change between major currencies. The base currency is taken from the left-hand column and the quote currency from the top row. For instance, selecting the Euro from the left column and moving horizontally to the US Dollar cell shows the percentage move for EUR (base) against USD (quote).
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