EUR/GBP Price Forecast: Euro hesitates around 0.8350 amid Pound strength
- EUR/GBP has found support above 0.8300, but remains capped below the 0.8365 area.
- Market expectations of a BoE rate hike on Thursday are keeping Pound downside attempts limited.
- The technical picture shows a fading bearish momentum with bulls still absent.
The Euro (EUR) remains practically flat against the British Pound (GBP) on Monday, with both currencies appreciating sharply against the US Dollar (USD) following the results of the US midterm elections, but with the GBP buoyed by market expectations that the Bank of England (BoE) will hike interest rates on Thursday. Against this background, the EUR/GBP pair remains stuck in a 40-pip range, just above 18-month lows, at 0.8330.
Eurozone preliminary data released on Wednesday revealed that consumer inflation accelerated to three-year highs in October, which adds pressure on the European Central Bank (ECB) to tighten its monetary policy further in the coming months. These figures have offset a downward revision of October’s HCOB Services Purchasing Managers Index (PMI) figures released earlier in the day.
In the UK, all eyes are on the BoE, which is widely expected to raise its Bank Rate by 25 basis points to 4% on Thursday. The final UK S&P Global Services PMI has also been revised lower, but the impact on the Pound was minimal.
Technical Analysis: EUR/GBP is looking for direction between 0.8320 and 0.8365
EUR/GBP trades at 0.8347 halfway through the last few days' trading range, between 0.8320 and 0.8365. Momentum indicators in the 4-hour chart are neutral-to-bullish, with the Relative Strength Index (14) nearing the 50 midline and the Moving Average Convergence Divergence (MACD) marginally positive. The Doji candles in the daily chart, however, highlight a hesitant market.
Bulls need to breach the October 30 and November 2 highs, near 0.8365 to confirm a deeper correction towards the October 26 high, in the 0.8400 area. On the downside, the area between Tuesday's low at 0.8330 and the late March 2025 lows at 0.8315 is likely to test bearish attempts. Further down, the February 2025 low, near 0.8250, emerges as a plausible target.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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 US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.51% | -0.52% | -0.16% | -0.35% | -0.66% | -0.29% | -0.42% | |
| EUR | 0.51% | -0.01% | 0.34% | 0.14% | -0.17% | 0.22% | 0.09% | |
| GBP | 0.52% | 0.01% | 0.36% | 0.17% | -0.13% | 0.23% | 0.09% | |
| JPY | 0.16% | -0.34% | -0.36% | -0.18% | -0.50% | -0.14% | -0.26% | |
| CAD | 0.35% | -0.14% | -0.17% | 0.18% | -0.31% | 0.05% | -0.08% | |
| AUD | 0.66% | 0.17% | 0.13% | 0.50% | 0.31% | 0.36% | 0.24% | |
| NZD | 0.29% | -0.22% | -0.23% | 0.14% | -0.05% | -0.36% | -0.12% | |
| CHF | 0.42% | -0.09% | -0.09% | 0.26% | 0.08% | -0.24% | 0.12% |
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.
