empty
21.04.2025 12:17 PM
EUR/GBP. Analysis and Forecast

This image is no longer relevant

The strengthening of the pair is linked to the euro's rise amid U.S. dollar weakness, driven by concerns over a potential recession in the U.S. and questions about the Federal Reserve's independence.

This image is no longer relevant

Today, the EUR/GBP pair continues to rise, trading above the key 0.8600 level. The pair's upward movement is supported by the euro's growth, which stems from the weakening of the U.S. dollar amid fears of a potential U.S. recession and ongoing debates over the Federal Reserve's independence.

However, the euro is facing certain headwinds following the European Central Bank's seventh consecutive interest rate cut last week. The ECB also warned of the potential negative impact of U.S. tariffs on economic growth, fueling expectations for further monetary easing in the coming months.

As ECB policymaker Madis Muller noted, falling energy prices and the impact of tariffs supported the recent rate cuts. He emphasized that monetary policy is no longer a restraining factor but warned of growing economic fragmentation, which could increase price pressures.

The upward potential of the EUR/GBP pair may be limited due to the strengthening of the British pound, which is benefiting from optimism surrounding ongoing trade negotiations between the U.S. and the U.K. British Prime Minister Keir Starmer has expressed his intention to reach an agreement with the U.S., especially after President Trump imposed a 10% tariff on British goods and a 25% tax on car, steel, and aluminum imports.

The first conversation between Starmer and Trump took place on Friday and was reportedly productive according to both sides. A Downing Street official stated that Prime Minister Starmer reaffirmed his commitment to "free and open trade," while emphasizing the importance of safeguarding national interests.

From a technical standpoint, if the pair successfully breaks through the nearest resistance at 0.86174 and consolidates above the key 0.8600 level, it will likely aim for the next target at 0.86960—just below the monthly high.

On the other hand, support at 0.85530 guards against an immediate decline toward 0.85200. That is followed by the round level of 0.8500, below which the bias may shift in favor of the bears.

However, as long as oscillators on the daily chart remain firmly in positive territory, the pair shows no signs of surrendering.

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

What to Pay Attention to on June 16? A Breakdown of Fundamental Events for Beginners

No macroeconomic reports are scheduled for Monday, but the market does not lack news. This week, Donald Trump announced his intention to raise all import tariffs, as none

Paolo Greco 06:46 2025-06-16 UTC+2

GBP/USD Overview – June 16: How Trump Is Undermining the Dollar

The GBP/USD currency pair will remain under the influence of geopolitics and politics in the new week. Essentially, we've been saying the same thing every day for the past four

Paolo Greco 04:54 2025-06-16 UTC+2

EUR/USD Overview – June 16: The Israel-Iran Conflict Changes Nothing

The EUR/USD currency pair moved sharply back and forth throughout Friday. The pair traded with high volatility for two consecutive days, and there is a clear and logical explanation

Paolo Greco 04:54 2025-06-16 UTC+2

EUR/USD. Weekly Preview. Focus on the Middle East and the Federal Reserve

The final trading day of last week ended on an uncertain note. Reacting to Middle East developments, the EUR/USD pair sharply declined on Friday, retreating from the multi-year price high

Irina Manzenko 01:30 2025-06-16 UTC+2

Bitcoin Gripped by Fear

Charity begins at home. As it turns out, the 47th President of the United States' loyalty to the crypto industry is rooted in personal interests. Donald Trump and his family

Marek Petkovich 01:29 2025-06-16 UTC+2

US Dollar: Weekly Preview

Once again, the dollar will be in the spotlight this week, not only because of the Federal Reserve meeting but also due to political developments in the United States

Chin Zhao 00:38 2025-06-16 UTC+2

British Pound: Weekly Preview

The UK will have at least one report that deserves attention. On Wednesday, the May inflation report will be released. According to market expectations, inflation will slow to 3.4% year-over-year

Chin Zhao 00:38 2025-06-16 UTC+2

Euro Currency: Weekly Preview

The European currency continues to benefit from the weakness of the U.S. dollar, which became fully apparent after Donald Trump returned to the scene. Honestly, discussing how Trump—or the events

Chin Zhao 00:38 2025-06-16 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair is showing a modest recovery from levels below 1.3600, retracing most of the previous day's losses, supported by a rebound in the U.S. dollar. In addition, concerns

Irina Yanina 13:09 2025-06-13 UTC+2

AUD/JPY. Analysis and Forecast

The AUD/JPY pair has been under selling pressure for the third consecutive day, reaching an almost two-week low around 92.30 during Friday's Asian session. After a sharp drop, spot prices

Irina Yanina 12:53 2025-06-13 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.