EUR/GBP Exchange Rate Hits 29-Month Low
According to todays daily chart of EUR/GBP:
The rate is around £0.832 per euro the lowest since April 2022.
The RSI indicator has dropped into oversold territory.
Yesterday, the EUR/GBP rate fell by 0.71%, driven by bearish sentiment following the release of PMI indices, which indicated a slowdown in the Eurozone economy.
According to Forex Factory:
French Flash Manufacturing PMI: actual = 44.0, expected = 44.3, previous = 43.9;
French Flash Services PMI: actual = 48.3, expected = 53.0, previous = 55.0;
German Flash Manufacturing PMI: actual = 40.3, expected = 42.4, previous = 42.4;
German Flash Services PMI: actual = 50.6, expected = 51.1, previous = 51.2.
Meanwhile, PMI indices for the UK remain above 50, signalling economic growth.
Flash Manufacturing PMI: actual = 51.5, expected = 52.3, previous = 52.5;
Flash Services PMI: actual = 52.8, expected = 53.5, previous = 53.7.
Technical analysis of the EUR/GBP chart today shows the price moving within a descending channel (marked in red).
In September, the price bounced off the £0.840 level, which had acted as support since June. The price movement formed an arc (shown by an arrow), suggesting that:
- Demand is weakening.
- The median line of the red channel is acting as resistance.
If bears maintain control of the market, the EUR/GBP rate could fall towards the lower boundary of the red channel.
However, if bulls attempt to recover, the price may face strong resistance at the £0.840 level.
Read more: https://fxopen.com/blog/en/oa-eur-gbp-exchange-rate-hits-29-month-low/
Text source: Forex Trading Blog
