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EUR/GBP Price Forecast: Euro hesitates around 0.8700 amid cautious markets

  • EUR/USD remains trapped within a tight range between 0.8695 and 0.8725.
  • Higher Oil prices are keeping Euro upside attempts limited on Monday.
  • On Tuesday, BoE's Bailey and ECB's Lagarde might give a fresh impulse to the pair.

The Euro (EUR) shows a netvous consolidation around the 0.8700 line against the British Pound (GBP) on Monday. Market sentiment has deteriorated following the failure of the peace talks between the US and Iran. Still, the two-week ceasefire remains in place, fuelling hopes of further negotiations and keeping market volatility at relatively low levels so far.

Investors, however, have been reluctant to place large Euro bets during Monday’s Asian and early European sessions, which leaves the EUR/GBP pair looking for direction within a 25-pip range. The doji candles in the daily calendar highlight a hesitant market.

The higher oil prices amid the US vow to block the Strait of Hormuz are likely to keep Euro upside attempts limited. On Tuesday, the speeches by Bank of England (BoE) Governor Andrew Bailey and the European Central Bank (ECB) President Christine Lagarde might give a fresh impulse to the pair.

Chart Analysis EUR/GBP

Technical Analysis

From a technical point of view, the EUR/GBP maintains a mild bullish bias, yet with momentum fading. The 4-Hour Relative Strength Index (RSI) is hovering near the neutral 50 level, and the Moving Average Convergence Divergence (MACD) edges up right above the zero line, showing a lack of a clear bias.

Bulls have been capped at 0.8722 on Monday, closing the way towards the April highs in the 0.8740 area. Further up, the year-to-date high awaits at 0.8789, although the pair is likely to need additional impetus to approach those levels

On the downside, the confluence of Friday's lows and the ascending trendline from mid-March lows, now around 0.8705, is likely to challenge bears ahead of the April 8 low, at 0.8687. Further down, the March 24 and 26 lows, near 0.8635, might attract sellers.

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

(This story was corrected on April 13 at 11:40 GMT, highlighting Tuesday's speeches from BoE Bailey and ECB's Lagarde, which are likely to be more relevant than those on Wednesday.)

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.

USDEURGBPJPYCADAUDNZDCHF
USD0.25%0.25%0.21%0.05%0.19%0.05%0.11%
EUR-0.25%-0.01%-0.04%-0.19%-0.08%-0.20%-0.10%
GBP-0.25%0.01%-0.02%-0.21%-0.08%-0.20%-0.13%
JPY-0.21%0.04%0.02%-0.21%-0.07%-0.20%-0.06%
CAD-0.05%0.19%0.21%0.21%0.18%0.02%0.09%
AUD-0.19%0.08%0.08%0.07%-0.18%-0.12%0.01%
NZD-0.05%0.20%0.20%0.20%-0.02%0.12%0.10%
CHF-0.11%0.10%0.13%0.06%-0.09%-0.01%-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 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).

Author

Guillermo Alcala

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.

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