EUR/GBP Price Forecast: Testing support at previous highs in the 0.8585 area
- EUR/GBP is testing support at 0.8585 after failing to break above 0.8600.
- Eurozone final Q2 GDP has been revised up, but German Industrial Production disappointed.
- In the UK, Lloyds data revealed that house prices contracted against expectations in August.
The Euro (EUR) is trading lower against the British Pound (GBP) following mixed Eurozone macroeconomic figures on Monday. The EUR/GBP pair is testing support at a previous resistance area, at 0.8585 ahead of the US session opening, after failing to find acceptance above the 0.8600 area last week.
In the Eurozone, data released by Destatis earlier on Monday revealed that the economy grew at a faster rate than previously thought in the second quarter, as the Gross Domestic Product (GDP) was revised up to 0.6% from the previously estimated 0.4% growth, which is a significant improvement from the first quarter’s 0.1% uptick. Year-over-year, Eurozone GDP has been revised to 1.2% growth from previous estimates of a 1% increase.
Earlier on the day, however, downbeat German Industrial Production figures cast doubt on the Eurozone's growth outlook and put negative pressure on the Euro. German factory output dropped 1.1% in July, against market expectations of a 0.3% increase, while June's reading was revised down to 0% from the 0.2% rise previously estimated.
In the UK, the Lloyds Housing Price Index, released earlier on Monday, showed that property prices contracted against expectations in August, but these figures failed to make any significant impact on the Pound.
Technical Analysis: Key support is at the 0.8565 area
EUR/GBP trades just above previous resistance, now turned support at 0.8585, with momentum indicators on intraday charts turning bearish. The Relative Strength Index (14) on the 4-hour chart has eased back toward 51, hinting at fading upside momentum, while the Moving Average Convergence Divergence (MACD) has slipped slightly negative, suggesting consolidation rather than a clear directional push.
A break below 0.8585 (July 30, August 19 highs) would expose the 0.8565 area where the trendline from mid-August lows crosses the September 2 trough. A break below here would negate the upside trend. On the topside, last week's high at 0.8607 is closing the path towards the June 29 and 26 peaks at 0.8632 and 0.8651, respectively.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
(This story was corrected at 11:01 GMT to say that the EUR/GBP was rejected at 0.8600 last week, and not at 186.00 as previously stated.)
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.09% | -0.16% | -1.04% | -0.14% | -0.23% | -0.05% | -0.16% | |
| EUR | 0.09% | -0.06% | -0.94% | -0.08% | -0.14% | 0.03% | -0.06% | |
| GBP | 0.16% | 0.06% | -0.86% | -0.02% | -0.07% | 0.10% | -0.01% | |
| JPY | 1.04% | 0.94% | 0.86% | 0.90% | 0.81% | 1.00% | 0.91% | |
| CAD | 0.14% | 0.08% | 0.02% | -0.90% | -0.10% | 0.09% | -0.02% | |
| AUD | 0.23% | 0.14% | 0.07% | -0.81% | 0.10% | 0.18% | 0.07% | |
| NZD | 0.05% | -0.03% | -0.10% | -1.00% | -0.09% | -0.18% | -0.11% | |
| CHF | 0.16% | 0.06% | 0.00% | -0.91% | 0.02% | -0.07% | 0.11% |
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.
