EUR/GBP stuck in a tight range as traders observe the war

EUR/GBP has spent Friday's session in a narrow range in the mid-0.8500s, barely changing on the day.
Eurozone Q2 GDP and employment matched forecasts, giving neither the Euro nor the Pound an edge.
With the data out of the way, the market is waiting for clearer signals from the Middle East war.

Agustin Wazne FXStreet

EUR/GBP has traded in a tight range around the mid-0.8500s on Friday, little changed on the day. The latest Eurozone figures came in close to forecasts, and they did nothing to push the pair out of the range it has held all week.

Eurozone Gross Domestic Product (GDP) grew 0.4% in the second quarter, matching expectations, with the annual rate at 1%. Employment rose 0.1% on the quarter, also as forecasted. Nothing in the release surprised, and the numbers are backward-looking, so the reaction was slight.

The pair has been going sideways for several sessions with the Euro (EUR) steadying after an earlier run of losses. United Kingdom (UK) data earlier in the week also landed close to forecasts, which left the Pound (GBP) without a clear lead of its own. With both sides matching expectations, little has separated them.

The Middle East war keeps a hand on energy prices, and through them on the inflation picture the European Central Bank (ECB) is weighing. Until that situation gets clearer, traders have little reason to commit to a direction.

Short-term technical analysis:

On the 4-hour chart, EUR/GBP trades at 0.8548. The cross is hovering just under a cluster of nearby resistance with the 100-period Simple Moving Average (SMA) at 0.8557 capping the topside together with horizontal barriers at 0.8549 and 0.8550. Price holds marginally above the 20-period SMA at 0.8545, which, alongside the latest relative strength index (RSI) reading near 49, suggests a consolidative, range-bound bias rather than a clear directional move.

On the downside, immediate support is seen at the 20-period SMA and horizontal level around 0.8545, ahead of a lower floor at 0.8541. On the topside, EUR/GBP would need to reclaim the nearby resistances at 0.8549 and 0.8550 to challenge the 100-period SMA at 0.8557, a break above which would be needed to re-open a more constructive short-term outlook.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

AUD/USD seems vulnerable near 0.6800, 10-month low amid bullish USD

AUD/USD languishes near a 10-month low during the Asian session on Friday, awaiting a break below 0.6800 before the next leg up amid a bullish US Dollar. Firming Fed rate-hike expectations, along with fading hopes for US-Iran diplomacy, help the USD hold gains at its highest level since April 2025. Moreover, the RBA’s dovish tilt undermines the Aussie and backs the case for further losses.

USD/JPY bulls turn cautious near 160.00 amid intervention risks

USD/JPY enters a bullish consolidation phase around its highest level since early September as bulls turn cautious amid intervention risk near 160.00. Meanwhile, the downside seems cushioned as the wide US-Japan interest rate gap keeps the Yen carry trade active. Furthermore, the possibility of a jumbo Fed rate hike and Middle East uncertainties hold the US Dollar near a 19-month top, supporting the currency pair.

Gold advances marginally; still below $3,900

Gold attempts a mild bounce and approaches the $3,900 region per troy ounce at the end of the week. The marginal recovery in the precious metal comes on the back of a vacillating mood surrounding the US Dollar along with mixed US Treasury yields following the release of US October Producer Prices.

Bitcoin just posted five straight losing weeks, and the storm may not be over yet

Bitcoin is struggling to find support, slipping below $70,000 as multiple headwinds threaten to push the Crypto King lower. The much-anticipated “Uptober” rally failed to materialize, with persistent selling pressure and widespread liquidations instead reinforcing the “Rektober” narrative.

Week ahead – Fed Minutes, inflation data and Nvidia earnings to guide investors

Fed minutes may add to hawkish tone as bets of 50-bps hike grow. Nvidia to report earnings as bar to impress high after spy scandal. Trade and geopolitics to be focal point of Trump-Xi summit.

Gold hit its lowest level of 2026 near $3,850

Gold (XAU/USD) attempts to stabilize around $3,890 on Friday after falling to $3,852 on Thursday, its lowest level since October 2025. The precious metal has lost more than 4% this week, as investors increasingly anticipate further monetary tightening from the Federal Reserve (Fed). The latest decline reflects a sharp change in market expectations.