EUR/GBP Price Forecast: Euro tests support at 0.8570 as Oil prices rally
- EUR/GBP extends its reversal from 0.8610 resistance to the support area at 0.8570.
- Brent Oil prices have rallied above the key $100 level, adding pressure on Eurozone economies.
- BoE Governor Bailey hinted at higher rate hikes on Friday and provided fresh support to the Pound.
The Euro (EUR) is dropping sharply against the British Pound (GBP) on Monday, with EUR/GBP bears testing support at the 0.8570 area, reversing last week's gains in a day following rejection at the 0.8610 resistance area. The Euro depreciates against most peers on Monday as Brent Oil prices cross the psychological $100 per barrel.
In the absence of key Eurozone macroeconomic data, the rally in crude prices triggered by US President Donald Trump's rejection of the latest peace proposal presented by Tehran is acting as the main market driver on Monday, and putting the Euro against the ropes.
Beyond that, Bank of England Deputy Governor Dave Ramsden affirmed earlier in the day that interest rates may have to rise if inflation pressures build. These comments follow similar ones by Governor Andrew Bailey and Deputy Governor Clare Lombardell last week and provide additional support to the Pound.
Technical Analysis: Bears take control and push against 0.8570
EUR/GBP trades at 0.8579, after testing last week's lows in the 0,8570 area, with bearish momentum building up. Indicators on the 4-hour chart are in deeply negative territory, with the 14-period Relative Strength Index (RSI) approaching oversold levels and the Moving Average Convergence Divergence (MACD) showing widening red bars.
The mentioned support area at 0.8570, which held bears on September 18, 19, and 22, is containing downside attempts for now, but rallies remain capped, keeping the immediate negative trend in place. A confirmation below that level would expose the ascending channel's floor at 0.8560, ahead of the area between the August 25 and September 15 lows, around 0.8550.
On the upside, the pair has a significant resistance area between the session highs at the mentioned 0.8610 and the channel top, now around 0.8615. Further up, the late June highs in the 0.8630 area would come into focus.
(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 Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.18% | -0.18% | -0.13% | 0.17% | 0.19% | 0.00% | 0.30% | |
| EUR | -0.18% | -0.22% | -0.34% | -0.02% | 0.02% | -0.03% | 0.12% | |
| GBP | 0.18% | 0.22% | -0.10% | 0.20% | 0.22% | 0.19% | 0.45% | |
| JPY | 0.13% | 0.34% | 0.10% | 0.29% | 0.31% | 0.26% | 0.56% | |
| CAD | -0.17% | 0.02% | -0.20% | -0.29% | 0.00% | -0.05% | 0.23% | |
| AUD | -0.19% | -0.02% | -0.22% | -0.31% | -0.00% | -0.06% | 0.23% | |
| NZD | -0.01% | 0.03% | -0.19% | -0.26% | 0.05% | 0.06% | 0.30% | |
| CHF | -0.30% | -0.12% | -0.45% | -0.56% | -0.23% | -0.23% | -0.30% |
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.
