EUR/GBP Nears Yearly High on Weak UK PMI: Bullish Run Targets 0.8800

EURGBP trading close to an annual high following poor UK PMI results. As long as support 0.8678 holds, intraday bias is still positive. Currently trading at 0.867372, it reached an intraday high of 0.87456.

With the composite PMI plummeting dramatically to 51.9 from 53.5 in September 2025—a two-month low—the UK Flash PMI statistics showed a sharp economic deceleration. August is falling short of expectations and showing decreasing growth momentum. Falling short of expectations at 46.9, the Manufacturing PMI worsened from 47.0 to 46.2, extending contraction for the twelfth consecutive month in weak domestic and foreign demand. Meanwhile, the predominant Services PMI dropped from a 16-month high of 54.2 to 51.9, well below the projected 53.5, inching near to stagnation albeit still expanding. These depressing numbers intensify worries about the UK's recovery sustainability, so putting pressure on the British Pound and affecting the Bank of England's current policy. 4% rates, particularly right before the budget disclosure.

Technical Analysis

The pair is currently trading above 55 and 200- EMA and  365-EMA on the 4-hour chart.

Bearish Trend Confirmation: Any break below 0.86780 confirms an intraday bearish trend. A drop to 0.8630/0.8600/0.8560/0.8520/0.8480 is likely.

Near-Term Resistance:  The near -term resistance is around 0.8750. Any violation above will take the pair to 0.8800/0.8850.

Indicator Analysis (4-hour chart)

CCI (50): Bullish

Average Directional Movement Index:  Neutral

Trading Recommendation

It  is good to buy on dips around 0.8700 with SL around 0.8660 for a TP of 0.8800.