EURGBP

Key Indicators

• Despite the recent rebound, the currency pair remains below the 100/200-day SMA's, and RSI remains below 50, suggesting weak buying momentum.

Fundamental Context

The currency pair reversed with another bearish continuation candle as investors assessed the latest Eurozone inflation data and its implications for the ECB’s rate outlook. Annual inflation rose to 3.3% in August, its highest level since September 2023 and well above the ECB’s 2% target, driven largely by a surge in energy prices amid continued fighting in the Middle East.