EUR/GBP Price Forecast: Euro pulls back from the top of a triangle pattern
- EUR/GBP retreats again from the resistance area between 0.8580 and 0.8585.
- ECB's Nagel offered further signals towards a September rate hike on Wednesday.
- The top of an ascending triangle pattern lies at 0.8582.
The Euro (EUR) posts moderate losses against the British Pound (GBP) on Wednesday, as the previous two days' recovery has been capped again at a key resistance area between 0.8580 and 0.8585, which holds the top of an ascending triangle pattern.
Macroeconomic data is scarce in both the UK and the Eurozone on Wednesday, and the Euro and the Pound are losing ground against a firmer US Dollar as rising global yields and fresh hostilities in Iran hammered investors’ appetite for risk.
In the Eurozone, the European Central Bank (ECB) Council member and Bundesbank President Joachim Nagel affirmed earlier on the day that markets see “over 95% chances of a September rate hike”, but has failed to provide any significant support to the Euro. The pair seems to need additional impulse to break above the mentioned resistance area.
Technical Analysis: Euro faces strong resistance ahead of 0.8585
EUR/GBP trades at 0.8573, holding in a neutral, slightly capped stance with bulls contained below the top of a triangle pattern, in the 0.8580-0.8585 area. Momentum indicators show a lack of clear bias, with the 4-hour Relative Strength Index (14) wavering around the key 50 level, and the Moving Average Convergence Divergence (MACD) flat near the zero line.
Triangles are often continuation patterns, and, in this case, a bullish breakout is favoured. Above 0.8585 (July 30 high), the next target is the late June lows just above 0.8600. The triangle's measured target is at the June 26 high, at the 0.8630 area.
Bearish attempts, on the contrary, are seen contained at the 0.8560 area, where the triangle bottom crosses Tuesday's low, and below here, at the August 25 low, of 0.8546.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.21% | 0.16% | -0.37% | 0.18% | 0.06% | 0.94% | 0.20% | |
| EUR | -0.21% | -0.06% | -0.57% | -0.03% | -0.15% | 0.70% | -0.00% | |
| GBP | -0.16% | 0.06% | -0.50% | 0.03% | -0.10% | 0.74% | 0.05% | |
| JPY | 0.37% | 0.57% | 0.50% | 0.55% | 0.42% | 1.27% | 0.57% | |
| CAD | -0.18% | 0.03% | -0.03% | -0.55% | -0.13% | 0.72% | 0.02% | |
| AUD | -0.06% | 0.15% | 0.10% | -0.42% | 0.13% | 0.85% | 0.16% | |
| NZD | -0.94% | -0.70% | -0.74% | -1.27% | -0.72% | -0.85% | -0.69% | |
| CHF | -0.20% | 0.00% | -0.05% | -0.57% | -0.02% | -0.16% | 0.69% |
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
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.
