empty
28.10.2024 04:32 PM
EUR/GBP. Analysis and Forecast

This image is no longer relevant

Following comments from European Central Bank (ECB) board member Pierre Wunsch regarding inflation, the EUR/GBP pair began to gain positive momentum. Wunsch stated that temporary and minor deviations from the inflation target due to energy price fluctuations are acceptable. He also mentioned that discussing the December policy decision is premature, and further monetary easing is not immediately necessary. These remarks are considered a primary factor in supporting the EUR/GBP pair.

Additionally, the rise may be driven by technical buying near the 0.8300 level, which has provided solid support for spot prices since the end of September. However, the pair's growth potential remains limited due to expectations of more aggressive ECB rate cuts, confirmed by a drop in Eurozone consumer inflation below the 2% target for the first time since June 2021 and sluggish economic growth.

On the other hand, the British pound is supported by expectations that the Bank of England's rate cuts will proceed more gradually than in the Eurozone.

With no major economic data scheduled for release today, the pair's volatility and direction remain limited. Traders should await the release of preliminary Consumer Price Index data from Germany and the Eurozone on Wednesday and Thursday, respectively.

From a technical perspective, daily chart oscillators indicate downward momentum, so it is too early to anticipate a recovery in the EUR/GBP pair from its September lows.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

XAU/USD. Analysis and Forecast

Today, gold remains under pressure; however, several factors are limiting further decline. Expectations that the tariffs imposed by U.S. President Donald Trump will support inflation in the United States

Irina Yanina 19:23 2025-07-08 UTC+2

USD/CHF. Analysis and Forecast

On Tuesday, the USD/CHF pair is under selling pressure, pulling back from the weekly high near the key psychological level of 0.8000. This decline is driven by a combination

Irina Yanina 12:47 2025-07-08 UTC+2

What to Watch on July 8th? Fundamental Events Overview for Beginners

No macroeconomic publications are scheduled for Tuesday. However, it cannot be said that the market was idle on Monday despite the lack of key macroeconomic events—there was still enough news

Paolo Greco 11:19 2025-07-08 UTC+2

Markets given breathing room as tariff deadline pushed to August

No need to panic. The market is simply cautious about the White House's return to the tariffs announced on America's Liberation Day. Donald Trump sent letters to various countries specifying

Marek Petkovich 10:14 2025-07-08 UTC+2

GBP/USD Pair Overview on July 8, 2025

The GBP/USD pair declined slightly on Monday, but it's still premature to speak of a downtrend. From a technical standpoint, the pair remains below the moving average line; however

Paolo Greco 08:55 2025-07-08 UTC+2

EUR/USD Review on July 8, 2025

The EUR/USD currency pair traded with a downward bias throughout Monday, although there were likely no solid reasons for the dollar to strengthen again. Let's recall that over the weekend

Paolo Greco 08:37 2025-07-08 UTC+2

GBP/JPY. Analysis and Forecast

During the European session on Monday, the GBP/JPY currency pair is approaching the 198.30 level. The pair finds some support from UK housing data: in June, house prices rose

Irina Yanina 19:40 2025-07-07 UTC+2

XAU/USD. Geopolitical Risks May Provide Additional Support to the Safe-Haven Precious Metal

Today, gold is displaying an intraday bearish tone despite rebounding from the $3300 level. Strengthening demand for the US dollar remains the primary factor pressuring gold, limiting its upward movement

Irina Yanina 19:09 2025-07-07 UTC+2

Bitcoin leads turbulent life

Beneath the calm surface of BTC/USD lie turbulent underwater currents that are reshaping the cryptocurrency market structure. Still waters run deep. On the surface, it seems that life

Marek Petkovich 15:48 2025-07-07 UTC+2

USD/JPY. Analysis and Forecast

The USD/JPY pair maintains a bullish bias, staying above the psychological level of 145.00, reflecting intraday selling pressure on the Japanese yen amid U.S. dollar strength. Investors are concerned that

Irina Yanina 12:59 2025-07-07 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.