0.8350: EUR/GBP Price Forecast as Euro Wavers Amid Pound Strength

  • 0.8300 underpins EUR/GBP, with support holding above that level. The 0.8365 area continues to cap gains.
  • Expectations that the BoE will raise rates on Thursday are limiting selling pressure on the Pound.
  • Bearish momentum is weakening on the charts, although buyers have yet to emerge.

EUR/GBP stands at 0.8330. The pair is confined to a 40-pip range just above 18-month lows, with the Euro (EUR) virtually unchanged against the British Pound (GBP) on Monday. Both currencies have gained sharply against the US Dollar (USD) following the US midterm election results. The GBP also draws support from market expectations of an interest rate increase by the Bank of England (BoE) on Thursday.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

Consumer inflation in the Eurozone accelerated to three-year highs in October, preliminary figures published on Wednesday showed. The data increase pressure on the European Central Bank (ECB) to tighten monetary policy further over the coming months. They also counterbalanced the downward revision to October’s HCOB Services Purchasing Managers Index (PMI) published earlier that day.

Thursday’s BoE decision dominates attention in the UK, with a 25 basis point increase in Bank Rate to 4% widely anticipated. A downward revision to the final UK S&P Global Services PMI, meanwhile, had little effect on the Pound.

0.8320–0.8365 Range Leaves EUR/GBP Without Direction: Technical Analysis

EUR/GBP Chart Analysis

At 0.8347, EUR/GBP sits midway within its recent trading band of 0.8320 to 0.8365. The 4-hour chart gives a neutral-to-bullish momentum signal: the Relative Strength Index (14) is approaching the 50 midpoint, while the Moving Average Convergence Divergence (MACD) is slightly positive. Daily Doji candles nevertheless point to market indecision.

A break above the October 30 and November 2 highs near 0.8365 is needed for bulls to confirm a more extended correction towards the October 26 high around 0.8400. Any renewed selling is likely to encounter support between Tuesday’s low of 0.8330 and the late March 2025 lows of 0.8315. Below that zone, the February 2025 low near 0.8250 offers a plausible downside target.

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

Pound Sterling: Today’s Currency Performance

The British Pound (GBP) recorded its strongest performance against the US Dollar today. Its percentage changes against the major currencies listed appear in the table below.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.51% -0.52% -0.16% -0.35% -0.66% -0.29% -0.42%
EUR 0.51% -0.01% 0.34% 0.14% -0.17% 0.22% 0.09%
GBP 0.52% 0.01% 0.36% 0.17% -0.13% 0.23% 0.09%
JPY 0.16% -0.34% -0.36% -0.18% -0.50% -0.14% -0.26%
CAD 0.35% -0.14% -0.17% 0.18% -0.31% 0.05% -0.08%
AUD 0.66% 0.17% 0.13% 0.50% 0.31% 0.36% 0.24%
NZD 0.29% -0.22% -0.23% 0.14% -0.05% -0.36% -0.12%
CHF 0.42% -0.09% -0.09% 0.26% 0.08% -0.24% 0.12%

Percentage movements between major currencies are displayed in the heat map. Read the base currency from the left-hand column and the quote currency from the top row. To view GBP (base)/USD (quote), for instance, select the British Pound on the left and follow its row across to the US Dollar column. The intersecting cell gives the percentage change for that pair.