• EUR/GBP depreciates 0.6% so far this week to test 10-month lows in the 0.8610 area.
• A tech rout in stock markets and frictions in the US-Iran peace deal are weighing on risk appetite on Wednesday.
• Momentum indicators suggest that upside attempts are likely to find sellers.

The Euro (EUR) extends losses for the fourth consecutive day against the British Pound (GBP) on Wednesday. The EUR/GBP pair has lost about 0.6% so far this week and is testing the 0.8610 area at the time of writing, its lowest level in the last 10 months.

The Pound sterling seems to be faring better than the Euro amid the risk-off market mood. Stock markets in Asia and the US have been dragged down by sharp declines in tech shares, as investors take profits after a long AI rally, while frictions between the US and Iran regarding nuclear inspections have cast a shadow over the outcome of the peace deal.

On the macroeconomic front, the Bank of England’s (BoE) official, Alan Taylor, stated on Tuesday that an extended hold is the right response to the increase in price pressures and that the bank should be ready to cut rates if a benign scenario plays out. In the Eurozone, the focus on Wednesday will be on German ZEW Business Climate data, which is expected to show a minor improvement in June.

Technical Analysis: Euro remains under significant bearish pressure

EUR/GBP trades at 0.8615 with a bearish near-term tone, holding a few pips above the lows of March 2026 and August 2025, with momentum indicators in most timeframes highlighting strong negative pressure. The 4-hour Relative Strength Index (14) sits just above oversold levels, while the Moving Average Convergence Divergence (MACD) remains slightly negative.

A confirmation below the mentioned 0.8611 would expose the August 2025 bottom, at 0.8595, and the 161.8% Fibonacci extension of Monday's sell-off, at the 0.8585 area. On the topside, initial resistance appears at Tuesday's highs of 0.8634, followed by the June 19 low, at 0.8657. A break above these would open the way toward the June 18 and 21 highs, around 8.8680.

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