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EUR/GBP Price Forecast: Euro languishes near eight-month lows at 0.8610

  • EUR/GBP consolidates losses around 0.8620, with eight-month lows at 0.8610 at hand.
  • The pair dropped on Thursday, following monetary policy decisions by the BoE and the ECB.
  • Technical indicators show oversold levels, which could lead to a bullish correction.


The Euro (EUR) edges up against the British Pound (GBP) on Friday, trading at the 0.8630 area at the time of writing after dropping from Thursday’s highs at 0.8670, but remains dangerously close to the eight-month lows of 0.8610.

The common currency accelerated its downtrend on Thursday following monetary policy decisions by the European Central Bank (ECB) and the Bank of England (BoE). Both central banks left rates unchanged, as widely expected, awaiting more clarity on the impact of the US-Iran war on inflation and economic growth. 

ECB’s President Christine Lagarde showed a rather hawkish view, which has been endorsed by the Bundesbank President and ECB committee member Joachim Nagel, hinting at a rate hike over the coming months. BoE Governor Andrew Bailey, on the contrary, was more ambiguous about monetary tightening. The market, however, reacted by selling the Euro against the Pound.

Technical Analysis: EUR/GBP picks up from oversold levels

Chart Analysis EUR/GBP

EUR/GBP maintains the bearish near-term bias intact, despite a mild recovery attempt following Thursday's sell-off. The pair is on track for a 0.35% weekly loss and is nearly 1.2% down in the last four weeks.

The 4-hour Relative Strength Index (RSI) hovers in the low 30s, after reaching oversold levels, hinting at a potential bullish correction. The Average Convergence Divergence (MACD) remains in negative territory, which suggests that rallies are likely to be sold into for now.

Upside attempts are likely to be challenged at the previous support area of 0.8655, which held bears on April 23 and 28. Further up, the next targets are the area around 0.8685 (near April 24 high and April 8 and 14 lows) and the trendline resistance from early April highs, now at 0.8700.

On the downside, key support is at the 0.8610 area, and the pair is likely to need an additional impulse to break it. In that case, the August 2025 lows near 0.8595 might provide some support ahead of the late Jun 2025 low, right above 0.8500.
(The technical analysis of this story was written with the help of an AI tool.)

Euro Price Today

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

USDEURGBPJPYCADAUDNZDCHF
USD-0.10%-0.02%-0.06%-0.05%0.09%0.23%-0.04%
EUR0.10%0.07%0.02%0.03%0.20%0.30%0.06%
GBP0.02%-0.07%-0.04%-0.02%0.12%0.24%0.00%
JPY0.06%-0.02%0.04%0.02%0.15%0.26%0.03%
CAD0.05%-0.03%0.02%-0.02%0.13%0.26%0.03%
AUD-0.09%-0.20%-0.12%-0.15%-0.13%0.12%-0.10%
NZD-0.23%-0.30%-0.24%-0.26%-0.26%-0.12%-0.23%
CHF0.04%-0.06%-0.01%-0.03%-0.03%0.10%0.23%

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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