EUR/GBP has been on a consistent downward trajectory since late December 2023, consistently forming lower highs and lower lows, resulting in a decline of approximately 2.5% from its peak. This week, the pair fell to its weakest point in nearly six months before mounting a modest comeback after bouncing off a key technical floor around 0.8500.
Maintaining a level above 0.8500 is crucial for any improvement in market sentiment towards the euro compared to the British pound. Failure to sustain this level could lead to a rapid decline towards the channel support at 0.8465, potentially opening the door for further losses towards 0.8400.
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