EUR/GBP Price Forecast: Consolidating above 0.8350 after rejection at 0.8370
- EUR/GBP holds at higher levels, with upside attempts capped below 0.8370.
- The Euro has drawn some support from a 20% decline in Oil prices.
- In the UK, the upbeat GDP and Industrial Production data have failed to support the Pound.
The Euro (EUR) is consolidating at a slightly higher range against the British Pound (GBP) this week, mainly favoured by the lower Oil prices, although the broader trend is still showing a capped tone. The EUR/GBP has found support above 0.8350, after bouncing from lows at 0.8320 last week, yet with upside attempts limited below 0.8370 so far.
The common currency has drawn some support from the decline in Oil prices, which provides some relief to the Eurozone economies. Brent Oil has dropped about 20% from last week's highs and has been hovering just above the $90 level over the last few days, its lowest prices since early September.
On the macroeconomic front, UK Gross Domestic Product (GDP) met expectations with a 0.7% growth in the third quarter and a 1.9% yearly advance, with Industrial Production and services’ output growing beyond expectations. The impact on the Pound, however, has been muted.
In the Euro Area, the calendar is thin on Thursday, and the highlight will be European Central Bank (ECB) President Christine Lagarde’s comments at an economic event in Paris during the late US session. Lagarde, however, is unlikely to change market expectations that the bank will hike interest rates by 25 basis points at its next meeting on December 17.
Technical Analysis: Euro corrects higher within a broader bearish trend
EUR/GBP trades at 0.8358, holding a broadly neutral immediate tone, with the broader bearish trend intact after plunging more than 3% in October. Momentum indicators on 4-hour charts are mixed, as the Relative Strength Index (14) holds above the 50 midline, while the Moving Average Convergence Divergence (MACD) has slipped marginally into negative territory, altogether highlighting a lack of a clear bias.
Bulls would need to break Wednesday's high at 0.8370 and the October 28 high around 0.8380 to expose the October 26 high in the 0.8400 area. To the downside, a bearish reaction below Wednesday's low at 0.8350 brings the November 6 and 9 lows, near 0.8335, back into focus.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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 Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | 0.07% | -0.08% | -0.02% | 0.32% | 0.02% | -0.12% | |
| EUR | -0.01% | 0.06% | -0.11% | -0.04% | 0.32% | -0.00% | -0.13% | |
| GBP | -0.07% | -0.06% | -0.15% | -0.10% | 0.26% | -0.05% | -0.20% | |
| JPY | 0.08% | 0.11% | 0.15% | 0.05% | 0.40% | 0.08% | -0.05% | |
| CAD | 0.02% | 0.04% | 0.10% | -0.05% | 0.35% | 0.03% | -0.10% | |
| AUD | -0.32% | -0.32% | -0.26% | -0.40% | -0.35% | -0.30% | -0.45% | |
| NZD | -0.02% | 0.00% | 0.05% | -0.08% | -0.03% | 0.30% | -0.11% | |
| CHF | 0.12% | 0.13% | 0.20% | 0.05% | 0.10% | 0.45% | 0.11% |
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.
