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

U.S. GDP and PCE Data Unlikely to Drastically Shift Market Conditions (Possible Resumption of #NDX and #SPX Growth)

Markets are already fatigued by the chaos unfolding in Donald Trump's mind and among his followers. Everything remains extremely unclear, so market participants are now fully focused on today's important

Pati Gani 09:48 2025-04-30 UTC+2

The Market Hears What It Wants to Hear

How far will greed carry the crowd? The late April rally in the S&P 500 somewhat sweetened the bitter pill for Donald Trump. His first 100 days in office have

Marek Petkovich 09:23 2025-04-30 UTC+2

What to Pay Attention to on April 30? A Breakdown of Fundamental Events for Beginners

A considerable number of macroeconomic events are scheduled for Wednesday, but we doubt they will have any meaningful impact on currency pair movements. The market continues to ignore most macroeconomic

Paolo Greco 06:28 2025-04-30 UTC+2

GBP/USD Overview – April 30: The Illusion of U.S. Democracy and Trump's Impeachment

The GBP/USD currency pair saw a slight downward correction after Monday's rise, which came out of nowhere. However, it's difficult to call this minor move a "dollar recovery." The U.S

Paolo Greco 03:29 2025-04-30 UTC+2

EUR/USD Overview – April 30: The Main Mystery of 2025 Revealed

The EUR/USD currency pair continued trading within a narrow range on Tuesday, showing relatively low volatility. In reality, 80 pips per day is not a bad volatility level

Paolo Greco 03:29 2025-04-30 UTC+2

NZD/USD: Bullish Prospects Amid Uncertainty

Although the past week was completely uninformative regarding fundamental indicators, it allowed adjustments to forecasts on economic growth, inflation, and the Reserve Bank of New Zealand's policy strategy based

Kuvat Raharjo 00:43 2025-04-30 UTC+2

USD/CAD: The Loonie and Politics

Early parliamentary elections were held in Canada, resulting in the Liberal Party, led by Mark Carney, forming the government. Carney will face the difficult task of negotiating with Donald Trump

Irina Manzenko 00:42 2025-04-30 UTC+2

The Dollar Steps on the Same Old Rake

Trust is hard to earn and easy to lose. While markets assess Donald Trump's first 100 days in office, believers in historical signs point to an event in late April

Marek Petkovich 00:42 2025-04-30 UTC+2

Further Tariff Concessions from Trump

According to rumors and statements from officials, U.S. President Donald Trump intends to soften automobile tariffs by supporting some changes sought by the industry. This will allow for the cancellation

Jakub Novak 18:48 2025-04-29 UTC+2

Trade Negotiations Between China and the U.S. Are Ongoing. Markets Await Results (There Is a Risk of Local Declines in EUR/USD and GBP/USD Pairs)

Markets have once again paused amid uncertainty over whether a trade agreement between the U.S. and China will be reached anytime soon. The cloud of uncertainty that Donald Trump

Pati Gani 10:04 2025-04-29 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.