- The shared currency finished the week with decent gains of 0.21%.
- Sentiment remains optimistic, despite recession fears threatening.
- EUR/GBP Price Analysis: Remains upwards but struggling at 0.8600 might open the door for selling pressure.
The EUR/GBP accelerates for the fourth day out of five in the week, set to finish with decent gains of 0.21%. On Friday, the cross-currency pair slumped towards its daily low at 0.8561, then snapped back and rose towards 0.8600. At 0.8595, the EUR/GBP retained the control and extended its weekly rally to two consecutive weeks.
Wall Street is set to finish the week on an upbeat tone, registering gains in the range of 2.34% and 2.73%. US economic slowdown, alongside lower inflation expectations, revealed at the University of Michigan June’s Consumer sentiment report tempered expectations for the Federal Reserve hike plan.
Reflection of the abovementioned are money market futures STIRs, showing that traders expect the Federal funds rate (FFR) to end around 3.50%, aligned with the St. Louis Fed President James Bullard’s forecast.
Friday’s EUR/GBP price action shows that the cross opened near 0.8580s and dipped towards 0.8561 before bouncing off those lows, settling around 0.8590. nevertheless, the lack of a EUR/GBP bullish impulse kept the pair below the 0.8600 threshold.
EUR/GBP Price Analysis: Technical outlook
Daily chart
EUR/GBP price action depicts the pair as upward biased. However, buyers unable to break above the 0.8650 kept the cross-currency range-bound in the 0.8550-0.8650 area, meaning consolidation lies ahead. Further confirmation of that is the Relative Strength Index (RSI) At 55.36, in positive territory but with an almost horizontal slope.
Therefore, the EUR/GBP top of the range is 0.8650. A breach of the latter would expose the 0.8700 figure. Once cleared, the next ceiling level would be the YTD high at 0.8720, followed by 0.8800.
On the flip side, the EUR/GBP first support is the 20-EMA at 0.5857. Break below would expose June’s 16 low at 0.8511, followed by the 50-EMA at 0.8493.
EUR/GBP Key Technical Levels
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 languishes near multi-year lows below 0.6250 after dovish RBA Minutes
AUD/USD remains depressed below 0.6250 early Tuesday after the December RBA Minutes reiterated that upside inflation risks had diminished, which reaffirms bets for a rate cut in early 2025. This, along with concerns about China's fragile economic recovery and US-China trade war, undermines the Aussie and weighs on the pair.
USD/JPY eases toward 157.00 after Japanese verbal intervention
USD/JPY has come under renewed selling pressure, easing toward 157.00 after Japanese Finance Minister Kato's verbal intervention. The pair erased early gains, induced by the October BoJ meeting Minutes. However, the downside could be limited as the US Dollar hold the previous rebound.
Gold: Buyers defends $2,600 ahead of holiday trading week
Gold price defends the $2,600 mark in the Asian session on Tuesday as buyers look to regain control. Markets face a relatively quiet trading session ahead of the holiday trading week. The US Richmond Fed Manufacturing Index for December will be watched out for later on Tuesday.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.