EUR/GBP Price Forecast: Aims to revisit four-month high of 0.8450


  • EUR/GBP extends winning spree amid sheer weakness in the Pound Sterling.
  • Surging borrowing costs for the UK government have weighed on their economic outlook.
  • The Euro gains despite expectations for the ECB to reduce interest rates by 100 bps by the mid-summer.

The EUR/GBP pair extends its winning streak for the fifth trading day on Tuesday. The cross outperforms as the Pound Sterling (GBP) performs weakly across the board, given that the United Kingdom’s (UK) economic outlook has faltered due to rising yields on Britain’s gilt securities.

The 30-year yields on UK gilts have risen to 5.47%, the highest level seen in more than 26 years. The surge in the UK government’s borrowing cost is partly driven by the uncertainty over incoming trade policies by United States (US) President-elect Donald Trump and the nation’s heavy reliance on foreign financing.

Investors expect that higher borrowing costs could force Chancellor of the Exchequer Rachel Reeves to go against her fiscal rules as she vowed, in the autumn budget, to rely on foreign borrowing for funding investment and not on day-to-day spending.

Meanwhile, the Euro (EUR) performs strongly against its major peers on Tuesday even though the European Central Bank (ECB) is expected to continue reducing interest rates this year. The ECB cut its Deposit Facility rate by 100 basis points (bps) to 3% in 2024 and is expected to cut further by a similar size by the mid-summer.

Euro PRICE Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the British Pound.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   -0.26% 0.29% 0.16% -0.02% -0.10% -0.36% -0.11%
EUR 0.26%   0.56% 0.39% 0.25% 0.16% -0.10% 0.15%
GBP -0.29% -0.56%   -0.13% -0.31% -0.37% -0.66% -0.40%
JPY -0.16% -0.39% 0.13%   -0.17% -0.24% -0.52% -0.26%
CAD 0.02% -0.25% 0.31% 0.17%   -0.08% -0.34% -0.08%
AUD 0.10% -0.16% 0.37% 0.24% 0.08%   -0.25% -0.01%
NZD 0.36% 0.10% 0.66% 0.52% 0.34% 0.25%   0.25%
CHF 0.11% -0.15% 0.40% 0.26% 0.08% 0.01% -0.25%  

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 Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

EUR/GBP extends its weekly rally to near 0.8430. The cross strengthened after breaking above the December 27 high of 0.8329, which has become a support now. A fresh bull cross, suggested by the 20- and 50-day Exponential Moving Averages (EMAs) near 0.8330, indicates a strong uptrend.

The 14-day Relative Strength Index (RSI) rises sharply to near 70.00, suggesting a strong bullish momentum.

The cross would witness a fresh upside move to near the August 26 high of 0.8475 and the psychological resistance of 0.8500 after breaking above the October high of 0.8448.

Alternatively, a downside move below the January 14 low of 0.8384 would falter the upside move and drag the asset towards the October 24 high of 0.8350, followed by the December 27 high of 0.8329.

EUR/GBP daily chart

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD jumps back above 1.1000 on renewed US Dollar sell-off

EUR/USD jumps back above 1.1000 on renewed US Dollar sell-off

EUR/USD is posting sizeable gains above 1.1000 in early Europe on Monday. EU prepares for retaliatory tariffs and rekindles the global trade war and US recession fears, drowning the US Dollar again aross the board. Traders now look to the EU Sentix and Retail Sales data. 

EUR/USD News
GBP/USD holds recovery gains above 1.2900 amid fresh US Dollar weakness

GBP/USD holds recovery gains above 1.2900 amid fresh US Dollar weakness

GBP/USD clings to recovery gains above 1.2900 in European trading on Monday. The pair capitalizes on renewed US Dollar weakness as risk sentiment takes a fresh hit, with European traders hitting their desks. Trump's tariffs-led US recession fears and dovish Fed bets keep the USD undermined.  

GBP/USD News
Gold price rebounds swiftly from multi-week low; lacks follow-through

Gold price rebounds swiftly from multi-week low; lacks follow-through

Gold price reverses an Asian session slide to over a three-week low, though it lacks follow-through. Recession fears continue to weigh on investor sentiment and benefit the safe-haven commodity. Bets for more aggressive Fed rate cuts undermine USD and also lend support to the XAU/USD pair.

Gold News
Crypto market wipes out $1 billion in liquidation as Asian markets bleed red 

Crypto market wipes out $1 billion in liquidation as Asian markets bleed red 

The crypto markets continue to decline on Monday, with Bitcoin falling below $78,000. The Asian markets also traded in the red, with Japan’s stock market extending losses to 8.5%, its lowest level since October 2023. 

Read more
Strategic implications of “Liberation Day”

Strategic implications of “Liberation Day”

Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025