EUR/GBP Price Forecasts: Bulls push against 0.8644 highs amid higher risk appetite
The Euro (EUR) shows a positive stance against the British Pound (GBP) on Monday, with bulls pushing toward one-week highs in the 0.8645 area. A higher appetite for risk, following news of a peace deal between the US and Iran and hawkish comments from European Central Bank (ECB) policymakers, is boosting the common currency across the board.
Market sentiment improved on Monday following news that Washington and Tehran had reached a memorandum of understanding to end the war in Iran and reopen the Strait of Hormuz. Oil prices have dropped to their lowest level in three months, providing some relief for Eurozone economies.
Beyond that, ECB officials Martins Kazaks and Joachim Nagel have expressed concern about ongoing inflationary pressures, fueling hopes of further monetary tightening and providing additional support to the EUR.
In the UK, the Bank of England (BoE) will release its monetary policy decision later this week. Investors will be looking at the vote split and the bank’s minutes for further insight into the bank’s forward guidance, but so far, monetary tightening is off the table for the foreseeable future.
Technical Analysis: Initial signs of bottoming
EUR/GBP trades right above 0.8640, holding a mildly bullish near-term tone as it hovers just under the top of last week's trading range. The higher low printed last week and Monday's positive trend suggest that the pair might be forming a bottom at the 0.8620 area.
Momentum indicators in 4-hour charts have turned positive, with the Relative Strength Index (RSI) nearing 60 and the Moving Average Convergence Divergence (MACD) indicator popping up into positive territory, suggesting a modest recovery bias rather than aggressive upside momentum.
Bulls need to break and confirm above the June 11 high, at 0.8644, and the June 4 and 5 highs between 0.8655 and 0.8660 to confirm a positive reversal and shift the focus towards the late May high, near 0.8680. On the downside, key support is around the mentioned 0.8620, an area that has capped bears several times in May and June, and guards the year-to-date low of 0.8612.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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