EUR/GBP Price Forecast: Crude rebound weighs on Euro as it stalls below 0.8370

• Above its former range ceiling of 0.8360, EUR/GBP has yet to establish a foothold beyond 0.8370.
• A modest recovery in oil prices is putting pressure on the Euro despite the positive market mood.
• October’s easing in inflationary pressures was confirmed by Germany’s final HICP figures.

With the former trading-range ceiling at 0.8360 still holding as support, EUR/GBP has yet to secure a foothold above 0.8370. The Euro (EUR) is little changed against the British Pound (GBP) on Wednesday, with recovering oil prices countering the benefit of positive risk sentiment.

Brent oil has moved back above $90 as crude prices recover from Tuesday’s lows. Traders are becoming wary of the lack of headway in negotiations towards a Middle East peace agreement.

Germany’s final Harmonised Index of Consumer Prices (HICP), published earlier on Wednesday, confirmed the preliminary estimates for October: a monthly decline of 0.1% and annual growth of 2.8%. These followed respective increases of 0.6% and 3.3% in September, pointing to a moderate easing of inflationary pressures in October.

With few UK economic releases scheduled for Wednesday, attention is turning to Thursday’s Q3 Gross Domestic Product (GDP) figures. Markets are preparing for moderate growth, supported by a strong manufacturing sector, which would reinforce hopes of another BoE rate hike in the early months of 2027.

Technical Analysis: Bullish momentum gathers strength

At 0.8367, EUR/GBP remains just above former resistance at 0.8360, maintaining a modestly bullish short-term bias. A Relative Strength Index (14) tilted towards positive territory and a slightly positive Moving Average Convergence Divergence (MACD) suggest buyers still have the advantage, provided this immediate support holds.

A sustained move beyond 0.8370 nevertheless continues to elude the bulls. Above that level, resistance could emerge around 0.8380, the high of 28 October, followed by the 26 October high in the 0.8400 region.

Conversely, a bearish move through support around 0.8360, marked by the highs of 30 October and 2 November, would bring the 6 and 9 November lows near 0.8335 into view. Below those sits the year-to-date low area near 0.8320.

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