EURGBP Finds Temporary Support After Hitting Fresh 13-Month Low

EURGBP edged higher in early Thursday trading after plunging to a fresh 13-month low, following Wednesday’s sharp 0.8% decline—the largest daily drop since June 22. The pound found strong support after reports suggested that newly appointed Prime Minister Burnham is likely to nominate a fiscally conservative finance minister to oversee the country’s fragile public finances.

The pair’s modest rebound appears largely driven by profit-taking after the previous session’s heavy sell-off, rather than a meaningful shift in trend. Broader downside pressure remains firmly in place, with the latest uptick viewed as a corrective move within the prevailing bearish structure.

Technical indicators on the daily chart continue to point lower, although oversold conditions and stretched momentum readings leave room for a temporary recovery before sellers potentially regain control.

The descending 10-day moving average at 0.8520 is expected to provide initial resistance, ahead of a more significant barrier near 0.8550, where the broken 50% retracement of the 0.8222–0.8865 rally converges with the 100-week moving average. A sustained move above this zone could delay the broader bearish outlook and allow for a stronger recovery toward 0.8600–0.8610, where the 200-week moving average and former range floor are located.

On the downside, a decisive break below Fibonacci support at 0.8467 (61.8% retracement of the 0.8222–0.8865 advance), which has so far contained selling pressure, would reinforce the bearish outlook and signal a continuation of the broader downtrend. Such a move would expose the next targets at 0.8373 (76.4% Fibonacci retracement) and 0.8355, the low recorded on May 29, 2025.

Res: 0.8500; 0.8520; 0.8550; 0.8600
Sup: 0.8467; 0.8449; 0.8373; 0.8355