EUR/GBP Price Forecast: Eases from 0.8575 resistance with the bullish bias intact
- EUR/USD remains steady above 0.8550 with four-week highs of 0.8574 at hand.
- Rising concerns about Burnham's welfare reform and a dovish BoE are weighing on the Pound.
- The pair is on a bullish channel with the next targets at 0.8575 and the 0.8600 area.
The Euro (EUR) is nursing moderate losses against the British Pound (GBP) on Wednesday, as bulls failed to find acceptance above the 0.8575 resistance area on Tuesday. The pair, however, remains within the upper range of the 0.8500s with the near-term bullish bias intact, and the focus shifting towards the Bank of England’s (BoE) monetary policy meeting, due on Thursday.
Rabobank’s FX strategists warn that the Pound could come under pressure as markets reassess the UK policy outlook. They argue that “the potential for disappointment over a lack of rate rises from the Bank this year, coupled with the likelihood of political friction over budget cuts,” may turn market sentiment less supportive for sterling.
Technical Analysis: Bulls target 0.8575 and the 0.8600 area
EUR/GBP trades at 0.8566, hovering in the upper half of a bullish channel. Momentum indicators are in positive territory, with the Relative Strength Index (14) around 64, after pulling back from overbought levels, and the Moving Average Convergence Divergence (MACD) histogram at slightly positive levels, hinting that upside pressure is still intact.
Immediate resistance is in the area between the mentioned 0.8575 area (July 2, 3, and 29 highs) and the channel cap, now around 0.8580. Above these levels, the next target is the late-June lows, around 0.8605.
On the downside, first support emerges at the 0.8550 area where Tuesday's lows meet the channel base. Below here, the July 23 low, near 0.8530, and July 17 and 20 highs in the 0.8510-0.8515 area are expected to challenge bears.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Pound Sterling Price This week
The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.00% | 0.26% | -0.05% | 0.07% | 0.80% | 0.35% | 0.41% | |
| EUR | 0.00% | 0.25% | -0.04% | 0.07% | 0.80% | 0.35% | 0.41% | |
| GBP | -0.26% | -0.25% | -0.39% | -0.18% | 0.55% | 0.10% | 0.15% | |
| JPY | 0.05% | 0.04% | 0.39% | 0.10% | 0.83% | 0.38% | 0.35% | |
| CAD | -0.07% | -0.07% | 0.18% | -0.10% | 0.70% | 0.28% | 0.34% | |
| AUD | -0.80% | -0.80% | -0.55% | -0.83% | -0.70% | -0.45% | -0.40% | |
| NZD | -0.35% | -0.35% | -0.10% | -0.38% | -0.28% | 0.45% | 0.05% | |
| CHF | -0.41% | -0.41% | -0.15% | -0.35% | -0.34% | 0.40% | -0.05% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
