EURGBP breaks significant resistance after a long consolidation due to Euro strength. As long as support 0.8660 holds, intraday bias is positive. Currently trading at 0.87536, it reached an intraday high of 0.87650.
Amid similar economic headwinds in 2025, the Bank of England (BOE) and European Central Bank (ECB) have followed somewhat different monetary policies with the ECB Stopping its 200-basis-point easing cycle from June 2024–2025 at a 2.00% deposit rate—poised to hold steady through 2027 as eurozone inflation stabilizes near 2%—while the Amid sticky UK inflation at 3.8% and 4.8% wage growth, BOE continues phased 25-basis-point cuts, so reducing its bank rate to 4% in September. The eurozone's more benign 2.1% inflation (predicted to drop to 1.7% in 2026) and strong growth, in contrast to the UK's poor 0.2%, create this split. Expansion and ongoing CPI pressures near 4% until mid-2027 enable ECB neutrality but BOE caution. Consequently, EUR/GBP trades between 0.8725 and 0.8730 amid currency volatility; eurozone bonds benefit from yield declines from ECB stability; and UK gilts struggle with inflation-sensitive uncertainty; forward guidance. highlights the divide: ECB considers rates "sufficiently robust," but BOE's "open" path denotes a deviation from worldwide synchronizing and unleashes varying European investment chances and risks.
Technical Analysis
The pair is currently trading above 55 and 200- EMA and 365-EMA on the 4-hour chart.
Bearish Trend Confirmation: Any break below 0.8700 confirms an intraday bearish trend. A drop to 0.8660/0.8630/0.8600/0.8560/0.8520/0.8480 is likely.
Near-Term Resistance: The near -term resistance is around 0.87650. Any violation above will take the pair to 0.8800/0.8850.
Indicator Analysis (4-hour chart)
CCI (50): Bullish
Average Directional Movement Index: Bullish
Trading Recommendation
It is good to buy on dips around 0.8720 with SL around 0.8670 for a TP of 0.8850.
