0.8360 resistance test: EUR/GBP Price Forecast as Euro challenges barrier and Pound momentum fades

Nearly 0.3% is EUR/GBP’s gain on Monday. The rebound brings resistance around 0.8360 into focus.
Stronger-than-expected activity across most major member economies has accompanied an upward revision to the Eurozone Manufacturing PMI.
Confirmation of the preliminary UK Manufacturing PMI reading has provided no support for the Pound.

EUR/GBP is up nearly 0.3% on Monday. The daily chart shows the pair testing resistance around 0.8360, at the lows recorded on 27 and 28 October. A reversal in Oil prices and encouraging Eurozone manufacturing data are supporting a marked recovery in the Euro (EUR) against the British Pound (GBP).

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

An upward revision puts the final Eurozone HCOB manufacturing Purchasing Managers’ Index (PMI) at 52.7, against the preliminary estimate of 52.4. That narrows the gap with September’s 52.9. Germany’s final PMI matched the 52.7 estimate, while readings for France and Spain were revised upwards. Italy, by contrast, recorded an unexpected contraction in activity.

October’s final UK S&P Manufacturing PMI came in at 52.8, confirming the preliminary reading. Up from 51.9 in September, it marks the sector’s strongest activity reading in five months. The figures reinforce hopes of a quarter-point increase in the Bank of England’s (BoE) Bank Rate on Thursday, but have offered the Pound no notable support.

Technical Analysis: 0.8360 Caps Fragile Recovery as Bearish Pressure Eases

At 0.8356, EUR/GBP retains a neutral near-term bias, with a former support level still limiting Euro bulls. Having recovered from oversold territory, the 4-hour Relative Strength Index (14) sits near 50, signalling balanced momentum. The Moving Average Convergence Divergence (MACD) is edging above zero into marginally positive territory. Together, these indicators suggest modest stabilisation rather than a clear trend.

A break above 0.8360 is needed to open the way for a more extended recovery. Resistance could then emerge at the 28 October high of 0.8380. Confirmation of a trend change, however, would hinge on the 26 October high near 0.8400.

If the pair cannot advance beyond 0.8360, renewed selling pressure might bring a retest of Friday’s lows near 0.8320. Further downside targets would be the late February 2025 highs around 0.8300, followed by the key 0.8220 to 0.8240 support zone, defined by the December 2024 and February 2025 lows.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Pound Sterling: Today’s Currency Performance

Against the major currencies listed below, the British Pound (GBP) recorded its strongest performance today versus the Australian Dollar. The table sets out its percentage changes against each currency.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.46%	-0.20%	0.22%	-0.00%	0.30%	0.13%	-0.63%
EUR	0.46%		0.27%	0.67%	0.45%	0.75%	0.59%	-0.14%
GBP	0.20%	-0.27%		0.45%	0.19%	0.49%	0.32%	-0.40%
JPY	-0.22%	-0.67%	-0.45%		-0.21%	0.07%	-0.10%	-0.85%
CAD	0.00%	-0.45%	-0.19%	0.21%		0.31%	0.12%	-0.59%
AUD	-0.30%	-0.75%	-0.49%	-0.07%	-0.31%		-0.17%	-0.89%
NZD	-0.13%	-0.59%	-0.32%	0.10%	-0.12%	0.17%		-0.71%
CHF	0.63%	0.14%	0.40%	0.85%	0.59%	0.89%	0.71%

Percentage movements between major currencies are displayed in the heat map. Select the base currency in the left-hand column and the quote currency in the top row. To read GBP (base)/USD (quote), for instance, start with the British Pound on the left and follow that row across to the US Dollar column. The intersecting cell gives the pair’s percentage change.