- EUR/GBP could find primary resistance around the psychological level of 0.8400.
- The currency cross is testing nine-day EMA support, suggesting a potential weakening of short-term price momentum.
- UK Gross Domestic Product declined by 0.1% following a 0.4% increase in December.
EUR/GBP gains ground after registering losses in the previous two sessions, trading around 0.8380 during the early European hours. The currency cross appreciates following the United Kingdom's (UK) Gross Domestic Product (GDP) released on Friday.
The Office for National Statistics (ONS) reported that the UK economy shrank in January, with Gross Domestic Product (GDP) declining by 0.1% following a 0.4% increase in December. Markets had anticipated a 0.1% expansion for the period.
A technical examination of the daily chart indicates the price of the currency cross testing nine-day Exponential Moving Average (EMA) support, suggesting a potential weakening of short-term price momentum.
However, the 14-day Relative Strength Index (RSI), a key momentum indicator, remains above 50, indicating a bullish bias is still intact. However, the EUR/GBP cross remains above the 50-day, reinforcing medium-term price momentum.
On the upside, the EUR/GBP cross could explore the area around the psychological level of 0.8400, followed by the two-month high of 0.8449, met on March 11.
The EUR/GBP cross tests immediate support at the nine-day EMA of 0.8374 level, followed by the 50-day EMA at 0.8337 level. A break below this level could weaken the medium-term price momentum and lead the currency cross to navigate the region around the three-month low at 0.8242 level, recorded on February 28.
EUR/GBP: Daily Chart
Economic Indicator
Gross Domestic Product (MoM)
The Gross Domestic Product (GDP), released by the Office for National Statistics on a monthly and quarterly basis, is a measure of the total value of all goods and services produced in the UK during a given period. The GDP is considered as the main measure of UK economic activity. The MoM reading compares economic activity in the reference month to the previous month. Generally, a rise in this indicator is bullish for the Pound Sterling (GBP), while a low reading is seen as bearish.
Read more.Last release: Fri Mar 14, 2025 07:00
Frequency: Monthly
Actual: -0.1%
Consensus: 0.1%
Previous: 0.4%
Source: Office for National Statistics
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD consolidates around 0.6400; remains close to YTD top
AUD/USD holds steady around the 0.6400 mark on Friday and remains well within striking distance of the YTD peak touched earlier this week. A positive risk tone, along with the potential for a de-escalation in the US-China trade war, act as a tailwind for the Aussie amid a bank holiday in Australia and the lack of any meaningful USD buying.
USD/JPY edges higher to 143.00 mark despite strong Tokyo CPI print
USD/JPY attracts some dip-buyers following Thursday's pullback from a two-week high as hopes for an eventual US-China trade deal tempers demand for the JPY. Data released this Friday showed that core inflation in Tokyo accelerated sharply in April, bolstering bets for more rate hikes by the BoJ.
Gold price bulls seem reluctant amid the upbeat market mood
Gold price trades with positive bias for the second straight day, though it lacks bullish conviction. Hopes for a faster resolution to the US-China standoff remain supportive of a positive risk tone. Adding to this modest USD uptick caps the upside for the commodity.
TON Foundation appoints new CEO after $400M investment: Will Toncoin price reach $5 in 2025?
TON Foundation has appointed Maximilian Crown, co-founder of MoonPay, as its new CEO. Toncoin price remained muted, consolidating with a tight 2% range between $3.08 and $3.21 on Thursday.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.