EUR/GBP Under Pressure Amid Rising Trade Concerns in Europe

Market Overview

The euro has faced renewed selling pressure following U.S. President Donald Trump’s announcement of imminent tariffs on European imports, including automobiles, semiconductors, and pharmaceuticals. These protectionist measures have raised concerns over European trade stability, increasing market caution. Meanwhile, investors remain focused on upcoming UK and Eurozone economic data, which could influence sentiment in the short term.

Technical Analysis

EUR/GBP resumed its downward trajectory on Thursday, following a brief consolidation phase on Wednesday. Sellers successfully pushed the pair below the 0.82910 support level, bringing prices toward a critical support zone at 0.82674. If sellers extend their control and breach this hurdle with conviction, further downside movement toward 0.82374 and 0.82042 becomes increasingly likely.

Bearish momentum indicators reinforce this outlook, with RSI remaining below the neutral 50 level and MACD histogram expanding in the negative zone, signaling continued selling pressure.

On the other hand, a higher low formation above 0.82674 could trigger a corrective bounce, shifting attention toward resistance levels at 0.83242 and 0.83778. However, for buyers to reverse the broader trend, they must reclaim levels above 0.83778, which appears challenging given the prevailing bearish momentum.

Key Technical Levels

• Resistance Levels: 0.82910, 0.83242, 0.83778
• Support Levels: 0.82674, 0.82374, 0.82042

Fundamental Drivers

U.S. Trade Policy Impact: The announcement of tariffs on key European exports has increased uncertainty for the euro, raising fears of a decline in EU trade volumes with the U.S.

Federal Reserve’s Stance: The latest FOMC minutes emphasized concerns over inflation risks tied to U.S. trade and immigration policies, keeping market participants cautious.

Upcoming Economic Data: Investors are closely watching UK and Eurozone retail sales and PMI reports due on Friday, which could determine near-term market direction.

Conclusion

EUR/GBP remains under bearish pressure, with 0.82674 acting as a pivotal support level. A break below this level could accelerate declines toward 0.82374 and 0.82042. However, if buyers establish a higher low, a short-term recovery toward 0.83242 is possible. Market focus remains on trade tensions and key economic reports, which will shape sentiment in the sessions ahead.

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