EUR/GBP Price Forecast: Bears await break below 0.8450, YTD low amid French debt crisis
The EUR/GBP cross attracts sellers for the seventh straight day and drops back closer to the year-to-date low, around the 0.8460-0.8455 region, at the start of a new week.
The EUR/GBP exchange rate continues its decline as sellers dominate, falling closer to its year-to-date low of approximately 0.8460-0.8455. This decline comes amid fears that the growing debt crisis in France could spread to other high-debt European countries, adding to market uncertainty over future fiscal policies. Ahead of the upcoming French presidential election, this situation is further intensifying the current bearish sentiment for the EUR/GBP pair.
Technical indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) suggest that the downswing is becoming overextended, potentially paving the way for a reversal. However, breaching the 0.8500 psychological barrier prior to the 0.8540 region could prompt a short-covering rally, lifting the EUR/GBP above the 0.8600 zone, which is also the 200-day Exponential Moving Average (EMA).
A daily close above this key level would signal a shift in the market sentiment. Conversely, a drop below the lower end of the year-to-date range could set the stage for a further slide towards the 0.8400 level, potentially testing the May 2025 swing low near 0.8380.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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