EUR/GBP Price Forecast: Euro rallies to fresh highs and looks to the 0.8735 level
- The Euro hits fresh lows against a weaker Pound and aims at the 0.8735 YTD high.
- Lackluster UK consumption figures have increased bearish pressure on the Pound on Friday.
- EUR/GBP is on a bullish trend, with supports at 0670 and 0.8635.
The Euro extends its gains for the second consecutive day against the Pound Sterling, reaching fresh three-week highs above 0.8700, with bulls targeting the year-to-date high of 0.8740.
UK data released earlier on Friday revealed that Retail Sales increased by a softer-than-expected 0.9% rate in June, against expectations of a 1.2% growth and following a 2.7% decline in May. These figures come after rather downbeat business activity numbers released on Thursday and are pulling the GBP lower against its main peers.
Technical analysis: In a bullish trend with support at 0.8695
From a technical perspective, the Euro might see some consolidation or a moderate correction, as the 4-Hour RSI has reached overbought levels. The broader bullish bias, however, remains in play, with previous resistance at 0.8695 likely to provide support now.
A further pullback might find buyers at the 0.8670 area, where the mid-term trendline support meets Thursday’s low. Further down, the bullish trend will come into question, and bears will target the 0.8635-0.8645 area, where the lows of July 17, 18, 21, and 13 converge.
On the upside, the next key resistance lies at April’s peak, at 0.8735 ahead of the 161.8% Fibonacci extension of the mid-June rally, at the 0.8750 area.
British Pound 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.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.10% | 0.41% | 0.52% | 0.29% | 0.52% | 0.30% | 0.08% | |
| EUR | -0.10% | 0.34% | 0.42% | 0.21% | 0.33% | 0.20% | -0.03% | |
| GBP | -0.41% | -0.34% | 0.08% | -0.15% | -0.01% | -0.11% | -0.37% | |
| JPY | -0.52% | -0.42% | -0.08% | -0.23% | -0.06% | -0.21% | -0.44% | |
| CAD | -0.29% | -0.21% | 0.15% | 0.23% | 0.27% | 0.01% | -0.24% | |
| AUD | -0.52% | -0.33% | 0.01% | 0.06% | -0.27% | -0.12% | -0.34% | |
| NZD | -0.30% | -0.20% | 0.11% | 0.21% | -0.01% | 0.12% | -0.23% | |
| CHF | -0.08% | 0.03% | 0.37% | 0.44% | 0.24% | 0.34% | 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 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.
