The Euro (EUR) is experiencing a downward trend against the British Pound (GBP), with bears testing support at two-week lows near 0.8630. This bearish pressure is building momentum, despite mixed data from Germany and the potential for the European Central Bank (ECB) to hike rates on Thursday. The technical analysis reveals a symmetrical triangle pattern, with the base breached, indicating a bearish outlook. If the support level at 0.8630 is broken, the next target is the 2026 lows at 0.8610-0.8620. On the upside, the reverse trendline at 0.8637 acts as a cap, and a break above it could lead to higher targets. The EUR/GBP pair is currently trading at 0.8634, with bears in control. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) further support the bearish view. The upcoming GDP and Manufacturing Production figures from the UK on Friday will be closely watched, while the ECB's rate hike decision on Thursday is expected to keep the Euro from depreciating further. The Euro's performance against major currencies is also notable, with the strongest performance against the Japanese Yen. The market dynamics and technical indicators suggest a bearish bias for the EUR/GBP pair, with potential support and resistance levels identified.
