• EUR/GBP wavers near 11-month lows with bears unable to break the 0.8600 support area.
• ECB's Lagarde and BoE's Bailey are set to speak at a central bankers summit later on the day.
• The political impasse in the UK is adding weight on the Pound.

The Euro (EUR) remains practically flat near 11-month lows against the British Pound (GBP) on Wednesday. The EUR/GBP pair trades a few pips above the 0.8600 support area, with all eyes on the speeches of European Central Bank (ECB) President Christine Lagerfeld, and Bank of England (BoE) Governor Andrew Bailey at the  ECB central bankers summit in Sintra, Portugal later on the day.

In an introductory speech on Monday, Lagarde showed an unusually hawkish stance, affirming that the bank has the capacity to hike interest rates further to push inflation away from target. BoE’s Bailey, on the other hand, is highly likely to stick to the “wait-and-see” stance, buying time to assess the impact of higher energy prices.

The British Pound is also facing headwinds from the political impasse in the UK. Andrew Burnham, the most likely candidate to succeed Keir Starmer as Prime Minister, has strived to tackle concerns of fiscal recklessness, but traders are waiting for clarity about the next cabinet’s policies to make investment decisions.

Technical Analysis: Bears lack conviction to break 0.8600 support

EUR/GBP trades at 0.8613, holding in a tight range just above the 0.8600 support area, with momentum indicators hinting at easing bearish pressure. The Relative Strength Index (14) hovers around 40, suggesting subdued, range-bound momentum rather than a clear trend, while the Moving Average Convergence Divergence (MACD) indicator flattens around the zero line, highlighting a lack of directional conviction.

The broader trend remains negative, but bears seem unable to push the pair below the area between year-to-date (YTD) lows, at 0.8604, and the mid-August 2025 lows, at 0.8597. Below those levels, the June 23, 2025 high around 0.8575 emerges as the next target.

On the topside, the pair seems to have significant resistance between Monday's high, at 0.8635, and the June 19 low, at 0.8657, as shown by last Friday's reversal. An unlikely bullish reaction above those levels would boost confidence for bulls and bring the June 22 highs, near 0.8690, into focus.

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