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EUR/GBP Price Forecast: Euro turns lower after rejection at the 0.8685 area

EUR/GBP eases to 0,8675 after failure to break 0.8685 highs

  • The pair treads water with both currencies strengthening against a weak US Dollar.
  • Technically, failure to break the reverse trendline, at 0.8700, keeps bears in charge.

The Euro is pulling lower against the British Pound on Monday, following a rejection at the resistance area around 0.8685, although it remains trading within the last few days’ horizontal range, and above the key 0.8650 support area.

The pair treads water with the broader bearish trend intact, and both currencies are trending higher against a softer US Dollar.

On the fundamental front, the UK calendar is practically empty this week, though a batch of strong releases seen last week continues to support the Cable. In the Eurozone, on the contrary, the German IFO Business Climate Index failed cheer investors on Monday. On Tuesday, the focus is on European Central Bank (ECB) president Christine Lagarde, although she is unlikely to say anything new about the bank’s monetary policy.

Technical analysis: Capped below the broken trendline

Chart Analysis EUR/GBP

EUR/GBP broke the trendline support from mid-January lows last week and seems unable to return above it, which suggests that bears are taking back control. The 4-hour Moving Average Convergence Divergence (MACD) and Signal lines hover around the zero, reinforcing a neutral tone, while the RSI is near 40, highlighting a neutral-to-negative trend.

Monday's low, near 0.8670, is likely to offer some support, but the key support area is at the January 13 and 15 lows around 0.8550. Below here, the September 2025 lows, near 0.8535, would come into focus.

On the upside, bulls would need to breach Monday's high, at 0.8585, and the mentioned trendline, now around 0.8700, to reverse the current bearish pressure and aim for the December 31 and January 21 high, of 0.8745.

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

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 Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD0.13%0.03%0.36%0.08%0.10%0.25%0.08%
EUR-0.13%-0.09%0.24%-0.05%-0.03%0.13%-0.05%
GBP-0.03%0.09%0.32%0.04%0.06%0.22%0.05%
JPY-0.36%-0.24%-0.32%-0.28%-0.25%-0.10%-0.27%
CAD-0.08%0.05%-0.04%0.28%0.03%0.18%0.00%
AUD-0.10%0.03%-0.06%0.25%-0.03%0.16%-0.02%
NZD-0.25%-0.13%-0.22%0.10%-0.18%-0.16%-0.17%
CHF-0.08%0.05%-0.05%0.27%-0.00%0.02%0.17%

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

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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