EUR/GBP Price Forecasts: Dips below 0.8700 with bulls losing steam

EUR/GBP extends losses below 0.8700 after rejection at the 0.8720 area.
Eurozone Industrial Production is unlikely to support the Euro on Monday.
In the UK, investors will be attentive to Tuesday's employment report.

Guillermo Alcala FXStreet

The Euro (EUR) extends losses below 0.8700 against the British Pound (GBP) on Monday, approaching the bottom of last week’s trading range, at 0.8685, after being rejected from the top of the broader downtrend channel, which now lies around 0.8720.

The pair dropped 0.3% on Friday, despite the upward revision of the Eurozone Gross Domestic Product's (GDP) second estimation, and is unlikely to draw any major support from the Industrial Production data scheduled for Monday. Factory output is expected to have contracted at a 1.5% pace in December, following a 0.7% gain in November.

The UK calendar is empty on Monday, and investors will be on the lookout for Tuesday’s employment report, which might provide further clues about the Bank of England’s next monetary policy decisions.

Technical Analysis:

In the daily chart, EUR/GBP is trading at 0.8695, after being rejected from trendline resistance, with the recovery from early February lows losing momentum. The Moving Average Convergence Divergence (MACD) shows a contracting positive histogram, pointing to an easing upside momentum, while the Relative Strength Index (RSI) stands right above 50, in the neutral area.

The pair is trading lower for the fourth consecutive day, and nears the support area above 0.8675 (February 6 low). A confirmation below here exposes the February 4 low, at 0.8612. To the upside, the mentioned trendline resistance, around 0.8720, and the February 9 low, near 0.8740, are the key levels for bulls.

(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.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.07%	0.06%	0.35%	-0.08%	-0.22%	0.03%	0.07%
EUR	-0.07%		-0.02%	0.27%	-0.15%	-0.29%	-0.04%	0.00%
GBP	-0.06%	0.02%		0.27%	-0.13%	-0.28%	-0.02%	0.02%
JPY	-0.35%	-0.27%	-0.27%		-0.41%	-0.55%	-0.30%	-0.26%
CAD	0.08%	0.15%	0.13%	0.41%		-0.14%	0.12%	0.14%
AUD	0.22%	0.29%	0.28%	0.55%	0.14%		0.26%	0.29%
NZD	-0.03%	0.04%	0.02%	0.30%	-0.12%	-0.26%		0.04%
CHF	-0.07%	-0.00%	-0.02%	0.26%	-0.14%	-0.29%	-0.04%

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.

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