EUR/GBP Slides to Fresh Multi-Month Low

EUR/GBP extended its decline on Wednesday, falling to its lowest level since late May 2025 as the euro remained under pressure from rising French government bond yields and a widening yield spread between France and Germany, while stronger-than-expected UK inflation data provided additional support for sterling.

French 10-year bond yields climbed to their highest level in more than four years, reinforcing concerns about the fiscal and political outlook in France and weighing on the single currency. At the same time, hotter UK inflation figures boosted expectations that the Bank of England may maintain a restrictive policy stance for longer, underpinning demand for the pound.

Technical indicators on the daily chart remain firmly bearish and continue to favor further downside. However, a deeply oversold RSI suggests that the latest decline may be nearing exhaustion, increasing the risk of a temporary pause or corrective rebound. The pair found support at 0.8373, the 76.4% Fibonacci retracement of the 0.8222-0.8865 advance recorded between December 2025 and November 2025.

Although EUR/GBP bounced from a fresh low at 0.8371, the recovery remains limited and the pair continues to trade below the initial resistance at the 0.8400 psychological level. Any extended recovery is likely to face strong headwinds around the falling 10-day moving average at 0.8436 and the July 15 low at 0.8454.

As long as these resistance levels cap upside attempts, any near-term strength may be viewed as a corrective move within the broader downtrend, with sellers expected to regain control and keep the bearish bias intact.

Res: 0.8400; 0.8436; 0.8454; 0.8465
Sup: 0.8373; 0.8355; 0.8315; 0.8300