2026-10-23 Readings lean bearish
EUR/GBP tests yesterday's low as euro weakness drives short-term downtrend
The EUR/GBP pair is trading lower at 0.83713 as the euro underperforms the British pound across the board. Both the 1-hour and 4-hour trends point downward, though short-term momentum shows signs of slowing. The market is quiet so far today, using only a quarter of its average daily range.
Trend and momentum
The 1-hour and 4-hour market structures are in a clear downtrend. However, momentum indicators are showing mixed signals. The 4-hour RSI is oversold at 29.33, while the 1-hour RSI sits at 40.73 alongside a bullish MACD cross. The 1-hour Bollinger Bands are currently squeezing with the price inside the bands, suggesting a period of consolidation. Volatility is low, with the price using only 26 percent of its average daily range today.
Key levels
Price is currently hovering near yesterday's low of 0.83692. A firm break below this level and the recent 4-hour low of 0.83686 could signal further downside continuation. On the upside, buyers need to clear yesterday's high at 0.83951 and the 4-hour high at 0.84451 to shift the immediate structure. Last week's low at 0.84014 now acts as potential resistance, while last week's high at 0.84780 remains the broader ceiling for the pair.
News and events this week
This week features key economic data for both currencies. The UK released jobs and inflation data earlier in the week, and traders are now watching UK retail sales on Friday, October 23. For the euro, the Eurozone HCOB Manufacturing PMI is scheduled for October 23, alongside a speech by the ECB's Cipollone. Earlier in the week on October 21, Eurostat also released updates on the Euro area government deficit.
What would push it higher
If the pair finds support at the current lows and Eurozone PMI data surprises to the upside, buyers might push the price back toward yesterday's high. A break upward from the current 1-hour Bollinger squeeze could confirm a short-term reversal.
What would push it lower
If UK retail sales show strength and the euro remains weak, the pair could break firmly below yesterday's low. This would likely trigger a continuation of the established 4-hour downtrend.
The engine has no open signal on this pair. Today's signals →