The euro (EUR) extended gains against the British pound (GBP) on Tuesday, with EUR/GBP trading around 0.8800 at the time of writing, up nearly 0.30% on the day. The pound came under renewed pressure following softer UK labor market data, allowing the euro to stay on the offensive.
Technical setup favors further upside
From a technical perspective, the pair continues to trade comfortably above its key moving averages, reinforcing the constructive outlook. Immediate resistance is seen near 0.8830 the November 5 high and the strongest level since April 2023. A daily close above this barrier would confirm a breakout and pave the way for further gains toward 0.8850–0.8900, with the psychological 0.9000 mark emerging as the next upside target.
On the downside, solid support sits around 0.8750, aligning with the upper boundary of the previous consolidation zone and the 21-day Simple Moving Average (SMA) at 0.8747. A sustained move below this area could weaken bullish momentum and expose the 50-day SMA near 0.8716.
Momentum indicators remain aligned with the bullish view. The Relative Strength Index (RSI) holds near 63, signaling steady upward momentum without overbought conditions, while the Average Directional Index (ADX) at 27 indicates a strengthening trend and suggests that buyers retain control in the near term.
Upcoming UK and eurozone data in focus
Traders now look ahead to key economic releases later in the week for fresh direction. On Thursday, the UK’s preliminary third-quarter Gross Domestic Product (GDP) report will be closely watched, while the eurozone is set to release Industrial Production data for September.
Friday’s calendar includes additional eurozone figures on employment and GDP, which could shape expectations for the European Central Bank’s (ECB) policy outlook and influence near-term moves in EUR/GBP.
