EUR/GBP Plunges to 15-Month Lows: What’s Driving the Sell-Off and What’s Next?

The EUR/GBP currency pair has experienced a significant downturn, hitting its lowest point since August 15, 2025, on Wednesday. This sharp decline follows persistent probes through critical support levels around the 0.8610 zone, a region previously acting as a multi-month higher base. The pair remains firmly in bearish territory, extending the considerable 0.8% drop recorded on Monday, which marked the most substantial daily decline since July 25 of the previous year.

Key Takeaways

• EUR/GBP reached its lowest level since August 15, 2025, on Wednesday.
• The pair has seen a significant drop, with Monday’s 0.8% decline being the largest since July 25, 2025.
• Key support at 0.8610 and 0.8600 (200-week moving average) are crucial levels to watch for potential bearish continuation or a temporary pause.

The Downtrend Intensifies: Bearish Momentum Builds

A series of lower tops, observed since mid-November 2025, clearly defines the prevailing downtrend for EUR/GBP. However, the recent formation of a higher base around the 0.8610 zone, where multiple downside attempts have been contained, suggests that this level could prove to be a significant hurdle for bears. Despite this, the current market sentiment leans bearish, fueled by rising negative momentum. The Relative Strength Index (RSI) on the daily chart indicates further downside potential, reinforcing the view that a bearish scenario is in play.

A decisive breach of the 0.8610 base and the psychological 0.8600 level, which also coincides with the 200-week moving average, would signal a continuation of the bearish trend. Such a move would likely expose the next strong support level at 0.8552. This key level is further reinforced by being the 50% retracement of the 0.8239/0.8865 range, the 100-week moving average, and the base of the weekly cloud.

Potential for a Bearish Pause and Strategic Re-entry

While the bearish momentum is strong, there’s a possibility that bears might pause their assault above the 0.8600 zone. Any subsequent upticks are expected to be limited, ideally capped below the 0.8640 zone. These potential limited rallies could, in fact, offer traders better levels to re-join the bearish market, capitalizing on any temporary retracements to establish new short positions.

The immediate resistance levels to monitor are at 0.8626, followed by 0.8640, 0.8656, and 0.8670. On the downside, key support levels, in addition to the aforementioned 0.8600 and 0.8552, include 0.8507 and 0.8478. Traders will be closely watching these levels to gauge the next directional move for the EUR/GBP pair.