EUR/GBP Price Forecasts: Showing signs of topping at 0.8750
- The Euro extends losses to 0.8720 lows on Monday after rejection at 0.8750.
- ECB's Makhlouf said on Monday that rate cuts are coming to an end.
- EUR/GBP is hovering near the neckline of a potential bearish H&S pattern, at 0.8720.,
The Euro is trading with marginal losses for the second consecutive day on Monday. The pair was rejected at 0.8750 last week and is showing signs of a deeper correction on Monday, although support at the 0.8015-0.8720 area keeps holding bears for now.
On the fundamental front, Eurozone Consumer Confidence data has failed to ease concerns about the region’s economic outlook, although ECB Makhlouf’s comments stating that we are “near the bottom of the rate-cutting cycle” have provided some support to the common currency.
EUR/GBP is hovering at the neckline of a potential H&S pattern
A look at the 4-hour chart shows the pair forming a bearish Head & Shoulders pattern right below a key resistance level, at the 0.8745 area, that has held bulls several times this year.
The lower high printed on the early Asian session on Monday gives fresh hopes for bears, although the 0.8705-0.8715 area, which broadly encloses the neckline of the H&S pattern and the lows of September 22 and 23 might be a tough nut to crack.
Further down, the measured target of the H&S figure is near the September 19 low of 0.8685. On the upside, immediate support is at the intra-day high of 0.8735 ahead of the September 25 high of 0.8750.
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 New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.14% | -0.24% | -0.52% | -0.07% | -0.20% | 0.07% | -0.01% | |
| EUR | 0.14% | -0.11% | -0.54% | 0.07% | -0.07% | 0.20% | 0.11% | |
| GBP | 0.24% | 0.11% | -0.32% | 0.18% | -0.02% | 0.31% | 0.22% | |
| JPY | 0.52% | 0.54% | 0.32% | 0.49% | 0.36% | 0.47% | 0.56% | |
| CAD | 0.07% | -0.07% | -0.18% | -0.49% | -0.10% | 0.14% | 0.05% | |
| AUD | 0.20% | 0.07% | 0.02% | -0.36% | 0.10% | 0.27% | 0.18% | |
| NZD | -0.07% | -0.20% | -0.31% | -0.47% | -0.14% | -0.27% | 0.06% | |
| CHF | 0.01% | -0.11% | -0.22% | -0.56% | -0.05% | -0.18% | -0.06% |
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.
