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EUR/GBP Price Forecast: Resistance around 0.8655 keeps holding bulls

  • EUR/GBP trades around 0.8650 after rejection at the 0.8655 previous support.
  • The Pound remains moderately bid on Monday despite growing uncertainty about UK Prime Minister Starmer's fate.
  • Growing Oil prices keep Euro bulls in check on Monday.

The Euro (EUR) opened the week on a moderately soft note against the British Pound (GBP). The pair pulls back to the 0.8650 area at the time of writing, from session highs near 0.8660, although it maintains a mild constructive tone intact, after bouncing from 0.8620 lows last week.

The Sterling is showing strength on calm trading on Monday, although the outcome of Thursday’s local elections in the UK is likely to keep GBP’s upside attempts limited. An increasingly criticised UK Prime Minister Keir Starmer is preparing an array of measures in the economic area, as well as to rebuild ties with Europe, but his popularity remains in decline following last week’s defeat, and calls to resign are growing even within his own party.

The Euro, on the other hand, remains subdued after US President Donald Trump rejected Iran's latest peace proposal. Brent Oil prices have risen above the key $100, as hopes of an imminent opening of the Strait of Hormuz fade, posing a serious challenge to the Eurozone’s Oil-importing economies.

Technical Analysis: Bulls remain focused on the 0.8655 resistance area

Chart Analysis EUR/GBP

EUR/GBP shows an immediate bullish trend. The double bottom at the 0.8620 area last week, and a constructive price action suggests that the pair is set for some recovery, although resistance at the previous support area at 0.8655 is holding bulls for now.

Momentum indicators On the 4-hour chart remain moderately positive. The Relative Strength Index (RSI) hovers just above the midline, while the Moving Average Convergence Divergence (MACD) stays marginally positive, together suggesting a mild but steady bullish momentum.

Above the mentioned 0.8655 (May 7 high), the next bullish target would be the area above 0.8680, near April 24 and 28 highs, and the April 17 and 21 highs around 0.8720. On the downside, the upward-trending support from last week's lows is now at 0.8643, and Friday's low is around 0.8635. This area is expected to provide support on a bearish attempt ahead of the mentioned 0.8620 area (near April 30 and May 5 low).

(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
USD0.22%0.32%0.25%0.02%0.11%0.37%0.27%
EUR-0.22%0.10%0.02%-0.23%-0.10%0.16%0.04%
GBP-0.32%-0.10%-0.09%-0.32%-0.20%0.06%-0.06%
JPY-0.25%-0.02%0.09%-0.23%-0.09%0.15%0.02%
CAD-0.02%0.23%0.32%0.23%0.13%0.33%0.25%
AUD-0.11%0.10%0.20%0.09%-0.13%0.24%0.15%
NZD-0.37%-0.16%-0.06%-0.15%-0.33%-0.24%-0.10%
CHF-0.27%-0.04%0.06%-0.02%-0.25%-0.15%0.10%

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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