Key Moments
- EUR/GBP has been trading close to two-week lows below 0.8550 after touching 0.8536 on Monday.
- Rising Oil prices and a setback in the US-Iran peace process are weighing on the Euro in a data-light session.
- A clear break under 0.8550 highlights downside levels at 0.8530 and 0.8510, while resistance remains concentrated around 0.8550-0.8580.
Bearish Pressure Builds on EUR/GBP
The Euro (EUR) has been weakening against the British Pound (GBP) for a second straight day on Tuesday, as EUR/GBP trades under sustained selling pressure. The cross is consolidating below the 0.8550 mark after having fallen to a two-week low of 0.8536 on Monday.
The move comes amid cautious sentiment in financial markets, with optimism about a rapid resolution to Iran’s war fading and Oil prices moving higher. These developments are weighing on the Euro, keeping EUR/GBP capped beneath the 0.8550 area.
Geopolitics in Focus Amid Quiet Data Calendar
With no major macroeconomic data releases scheduled in either the United Kingdom or the Eurozone on Tuesday, investors are primarily focused on geopolitical headlines. Strategists at Rabobank note that, while the Eurozone economy appears to have absorbed the impact of elevated energy prices and supply issues linked to the closure of the Strait of Hormuz, the failure of the US-Iran peace agreement “clearly implies downside risks to growth and upside inflation concerns,” putting notable pressure on the Euro.
Technical Setup: Sellers Dominant Below 0.8550
From a technical standpoint, EUR/GBP has turned decisively lower after breaking an ascending channel in late July. This week’s drop through the prior support zone around 0.8550 has reinforced the bearish reversal, with that same region now acting as a barrier for buyers.
Momentum indicators support the downside bias. On the 4-hour chart, the Relative Strength Index (14) is trading in the mid-30s, while the Moving Average Convergence Divergence (MACD) is holding slightly in negative territory.
On the downside, the first key support level is located at 0.8530, corresponding to the July 24 low. Below that, a former resistance band around 0.8510 becomes the next area of interest. On the upside, bulls would need to reclaim the 0.8550 zone to bring prices back into prior ranges and refocus attention on Monday’s peak at 0.8566 and the highs recorded on August 5 and 6, close to 0.8580.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Euro Performance Against Major Currencies
The table below shows today’s percentage change in the Euro (EUR) against a range of major currencies. According to this snapshot, the Euro has shown the strongest performance versus the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.09% | 0.04% | 0.02% | -0.01% | -0.00% | 0.19% | 0.10% | |
| EUR | -0.09% | -0.04% | -0.07% | -0.08% | -0.05% | 0.11% | 0.01% | |
| GBP | -0.04% | 0.04% | -0.04% | -0.05% | -0.02% | 0.15% | 0.05% | |
| JPY | -0.02% | 0.07% | 0.04% | -0.01% | 0.00% | 0.18% | 0.09% | |
| CAD | 0.00% | 0.08% | 0.05% | 0.01% | 0.03% | 0.19% | 0.09% | |
| AUD | 0.00% | 0.05% | 0.02% | -0.01% | -0.03% | 0.16% | 0.07% | |
| NZD | -0.19% | -0.11% | -0.15% | -0.18% | -0.19% | -0.16% | -0.09% | |
| CHF | -0.10% | -0.01% | -0.05% | -0.09% | -0.09% | -0.07% | 0.09% |
The heat map reflects the percentage move of each currency pair, with the base currency 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 across to the US Dollar cell provides the percentage change for EUR (base)/USD (quote).
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