Image © Adobe Images
The pound to euro exchange rate is burrowing deeper in a downward channel.
Pound sterling is set to record its sixth consecutive monthly decline after downside momentum accelerated into Q4.
This as nearly every rally attempt in 2025 has ultimately failed below the previous one, confirming strong trend discipline.
Attempts at stabilisation (August–October) were weak and short-lived, favouring further pressure on the pound.
The setup is visualised on the monthly chart, where we see pound sterling's malaise against the euro most clearly illustrated:
Because the downtrend channel is clean and respected, the default interpretation of technicals is that the downtrend likely continues until the market breaks above the upper channel line.
1.1285 - highlighted in blue - looks like the next major support.
If 1.1285 goes, the channel implies a potential extension toward 1.11-1.12 early in 2026.
Unless GBP/EUR climbs back above roughly 1.155–1.16, the structure stays firmly bearish.