• EUR/GBP bounced up from lows near 0.8650 but remains capped below 0.8670 so far.
• Weak German consumer confidence data has weighed on the Euro across the board.
• Technical indicators show a waning bearish pressure.

The Euro (EUR) is trimming some losses against the British Pound (GBP) on Monday after finding support at the 0.8655 area late last week. Upside attempts, however, remain capped below a previous support area at 0.8670 so far, which leaves the broader bearish trend in play for now.

Data from Germany released earlier on Monday revealed that consumer confidence for May, as measured by the GfK Consumer Confidence Survey, deteriorated to its weakest level since February 2023, amid the consequences of the war in Iran. The impact of these figures on the Euro, however, has been cushioned by a mild risk appetite, fuelled by news of ongoing negotiations between the US and Iran to end the Middle East conflict. This is keeping the Euro and the Pound moderately positive against the safe-haven US Dollar (USD).

Technical Analysis: Bears are losing momentum

From a technical perspective, the 4-hour chart shows the EUR/GBP trading within a bearish channel, although Friday's upper low and a bullish divergence in the Relative Strength Index (RSI) suggest that sellers might be losing momentum.

The RSI has been trending higher, although it is still below the 50 midline, highlighting a mild bearish pressure. The Moving Average Convergence Divergence (MACD) histogram is flat near the zero line, pointing to a lack of strong directional momentum, altogether showing an indecisive market.

Bulls would need to confirm above the area around 0.8685 (April 8, 14 lows, and April 24 high) to clear the path towards trendline resistance, now at 0.8705. Key support is at the confluence of Thursday and Friday's lows, between 0.8655 and 0.8660, and the channel bottom, at 0.8650. Further down, the next target is the March 24 and 26 lows near 0.8635.

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