EUR/GBP Price Forecast: Euro wavers near 0.8350 as Pound strengthens

Support above 0.8300 is holding for EUR/GBP, while the 0.8365 area continues to cap gains.
With markets anticipating a BoE rate rise on Thursday, attempts to push the Pound lower remain limited.
Although bearish momentum is easing, the technical outlook offers no sign of bulls returning.

Expectations of a Bank of England (BoE) interest rate rise on Thursday are supporting the British Pound (GBP), leaving the Euro (EUR) little changed against it on Monday. Both currencies have gained sharply against the US Dollar (USD) in the wake of the US midterm election results. With these forces in play, EUR/GBP is confined to a 40-pip range at 0.8330, just above 18-month lows.

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

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

A widely anticipated 25 basis point increase in the Bank Rate to 4% on Thursday keeps the BoE at the centre of attention in the UK. Sterling showed little reaction to a downward revision in the final UK S&P Global Services PMI.

Technical Analysis: EUR/GBP Remains Undecided Between 0.8320 and 0.8365

At 0.8347, EUR/GBP sits midway within the 0.8320–0.8365 range that has contained trading over the past few days. On the 4-hour chart, momentum indicators lean neutral to bullish: the Relative Strength Index (14) is approaching its 50 midline, while the Moving Average Convergence Divergence (MACD) is slightly positive. By contrast, daily Doji candles point to continued market indecision.

A break above the highs of 30 October and 2 November, near 0.8365, is needed for bulls to confirm a deeper correction towards the 26 October high around 0.8400. Should the pair turn lower, sellers are likely to face a test in the zone stretching from Tuesday’s low of 0.8330 to the late March 2025 lows of 0.8315. Below that, the February 2025 low near 0.8250 presents a plausible target.

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

Pound Sterling Records Its Strongest Performance Against the US Dollar Today

Today’s percentage movements in the British Pound (GBP) against the major currencies listed are set out below. Sterling’s strongest performance was against the US Dollar.

	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. Select the base currency in the left-hand column and the quote currency in the top row. To read GBP (base)/USD (quote), for instance, start with the British Pound on the left and follow that row across to the US Dollar column; the intersecting cell gives the percentage change.