|

EUR/GBP Price Forecast: Cross remains capped below Key SMAs despite tentative rebound

  • EUR/GBP trades choppy on Thursday as resilient UK GDP data supports the Pound while UK political uncertainty limits gains.
  • Traders price in at least two rate hikes from both the ECB and BoE amid persistent Oil-driven inflation risks tied to Middle East disruptions.
  • Technically, EUR/GBP remains capped below the 50-day and 200-day SMAs, keeping the near-term bias tilted to the downside.

EUR/GBP trades choppy on Thursday, with the British Pound (GBP) modestly outperforming the Euro (EUR) on the back of resilient UK economic data, while traders also assess growing political noise in the United Kingdom. At the time of writing, the cross is trading around 0.8659 after touching an intraday high of 0.8668 earlier in the day.

The UK economy expanded by 1.1% YoY in the first quarter of 2026, accelerating from 1% in the previous quarter and beating market expectations of 0.8%, according to preliminary estimates. On a monthly basis, UK GDP rose 0.3% in March, defying forecasts for a 0.2% contraction, though growth slowed slightly from February’s 0.4% expansion.

However, the GBP is struggling to build on gains from the stronger UK economic data as political uncertainty weighs on sentiment. Speculation over potential leadership challenges to Prime Minister Keir Starmer has intensified following the Labour Party’s weak performance in recent local elections. UK Health Secretary Wes Streeting, who is viewed as a leading contender to replace Starmer, resigned from the government on Thursday.

Meanwhile, investor attention also remains focused on the monetary policy outlook for the European Central Bank (ECB) and the Bank of England (BoE) amid Oil-driven inflation risks stemming from ongoing disruptions in the Middle East. Traders are now pricing in at least two interest rate hikes from both central banks by the end of the year.

The Euro is failing to benefit from rising hawkish ECB bets as the Eurozone is viewed as more vulnerable to the ongoing energy shock due to its heavier reliance on imported energy, raising concerns about slowing economic growth. The prospect that the ECB may face greater difficulty in raising interest rates is keeping the near-term bias in EUR/GBP tilted to the downside.

Technical Analysis:

In the daily chart, EUR/GBP keeps a mildly bearish near-term tone as it holds beneath both the 50-day Simple Moving Average (SMA) at 0.8671 and the 200-day SMA at 0.8702. The pair is consolidating below these overlapping trend filters, suggesting rallies remain constrained for now, while the Relative Strength Index (RSI) near 48 stays neutral-to-soft and a slightly positive Moving Average Convergence Divergence (MACD) reading hints at only tentative upside momentum.

On the topside, initial resistance emerges at the 50-day SMA around 0.8671, with a stronger cap aligned at the 200-day SMA near 0.8702, where sellers could reassert control if the cross attempts a recovery. With no clear support levels from major averages below spot, any further downside would leave EUR/GBP vulnerable to probing lower swing areas, keeping the broader risk skewed toward additional weakness while price remains under the aforementioned moving averages.

(The technical analysis of this story was written with the help of an AI tool.)

Pound Sterling Price Today

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

USDEURGBPJPYCADAUDNZDCHF
USD0.12%0.11%0.06%0.12%0.35%0.14%-0.02%
EUR-0.12%-0.03%-0.07%-0.01%0.18%-0.02%-0.14%
GBP-0.11%0.03%-0.04%0.02%0.23%0.00%-0.08%
JPY-0.06%0.07%0.04%0.04%0.27%0.05%-0.09%
CAD-0.12%0.00%-0.02%-0.04%0.24%-0.00%-0.09%
AUD-0.35%-0.18%-0.23%-0.27%-0.24%-0.21%-0.28%
NZD-0.14%0.02%0.00%-0.05%0.00%0.21%-0.10%
CHF0.02%0.14%0.08%0.09%0.09%0.28%0.10%

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

Vishal Chaturvedi

I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.

More from Vishal Chaturvedi
Share:

Editor's Picks

AUD/USD flirts with 0.7000, lowest since early August amid bullish USD

AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight. Against the backdrop of the hawkish Fed, a two-day rally in oil prices revives inflation fears and continues to push US bond yields to multi-year highs. Adding to this, geopolitical risks lift the US Dollar to a two-month high, overshadowing RBA rate hike bets and weighing on the pair.

USD/JPY pulls back from three-week high after failing near 159.00

USD/JPY edges lower during the Asian session on Friday, stalling its recent strong move to a three-week high of 159.00 as Japanese Yen bears turn cautious amid intervention fears. Meanwhile, the US Dollar retains a strong bullish undertone as the Fed's hawkish outlook and oil-driven inflation fears continue to push US bond yields to multi-year peaks. Furthermore, the BoJ's dovish rate hike last week might cap JPY and support spot prices.

Gold treads water below $4,300

Gold grabs some buying attention and advances marginally at the end of the week, partially retracing the weekly decline, although it is still navigating below the key $4,300 mark per troy ounce. The fresh selling bias on the Greenback and the modest decline in US Treasury yields appear to support the humble advance in the precious metal.

Week ahead: Rate hike bets face a crucial data week
Despite the solid drop from the mid-September high, oil prices remained in the driver’s seat for another week, setting the tone in financial markets. Six months have passed since the late-February start of the US-Iran conflict, and there is still no breakthrough in the stalled talks, despite pressure from regional leaders and the rest of the world.
CFTC Report: Defensive currency positioning takes hold
The week in one sentence: Sterling and Euro shorts deepened in the week to September 22, while Yen longs were cut sharply. Oil positioning improved despite a steep price decline, and Gold exposure remained crowded. The main signal was a more defensive currency positioning backdrop.
Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.