EUR/GBP Price Analysis: Bear's target 0.8700 mark as market awaits BoE decision

EUR/GBP tumbles towards 0.8700 as banking turmoil weighs on the Euro.
Pound gains on Euro as market brace for UK CPI data and BoE policy decision.
GBP buoyed by increasing odds of a pause in the BoE rate decision.

EUR/GBP faces significant pressure as the market awaits the UK Consumer Price Index (CPI) and Bank of England (BoE) policy decision. The Euro has started to fall amid ongoing banking issues, as reports suggest that two more commercial banks are under scrutiny for possible contagion.

The Pound sterling is getting a boost as money markets price in a 50% chance of no interest rate hike by the BoE on Thursday, and the same chance of a 25 basis-point increase. With the odds of a pause rising, this is perceived as positive amid banking turmoil.

EUR/GBP is currently sitting around a multi-month low at the 0.8725 level, which is also the surface of an ascending trendline beginning at the 0.8342 mark on a daily timeframe. A convincing break below would likely send the pair towards uncharted territory until the support zone at the 0.8600 level.

The 21- Daily Moving Average (DMA) and 50-DMA crossover is contributing to the downside bias for EUR/GBP. Any upside gains are likely to be capped around the 0.8800 mark, followed by both Moving Averages. Although the Relative Strength Index (RSI) is signaling an oversold condition for the pair, the price is likely due for a pullback.

All eyes will be on the UK's CPI data before heading into the BoE rate decision later this week.

EUR/GBP: Daily chart

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.