Eurgbp Recovers But Remains Under Pressure

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Eurgbp Recovers But Remains Under Pressure

Eur/Gbp Recovers From 0.8400, Remains Under Pressure

EUR/GBP has declined to its 22-month low and even crossed the 0.8400 level before staging a thin recovery. Despite the little upside, the EUR/GBP pair is still struggling at multi-year lows and is at a long distance from the 0.8600 (high from April.)

The political turmoil in Europe is keeping the EUR under tabs as the snap elections of France are just a few weeks away. Meanwhile, the GBP traders are getting ready for the BoE rate decision next week before making their next move.

Eur/Gbp Traders Await Uk Cpi And Boe Decision

The members of the ECB are also leaving a lot of comments lately in an attempt to cooldown the market sentiment. The reason for this is to support the EUR which is one of the worst performing currencies this week. So, if we say that the financial markets are now worried about the instability in France, then it wouldn't be wrong.

On the UK's side, the CPI will be released on Wednesday, and then the BoE rate decision is due on Thursday. At the last meeting, the MPC members voted in favor of keeping the rate at 5.25%. For the upcoming meeting, no change is expected but investors will be looking for any signals of a change in policy.

The technical analysis of EUR/GBP shows that it is now printing near the 22-month low and has already tested the 0.8400 support. The pair has since recovered and is now seen near 0.8440, but the momentum is still tilted toward the downside.

Overall, the EUR/GBP is ready to close its 5th week in red and has already lost -2.8% since the start of 2024. If the EUR/GBP manages to recover back above 0.8460, it will turn the trend of the pair.

But for now, all the timeframes of the EUR/GBP are in favor of the GBP, while the EUR remains depressed in the wake of upcoming political turmoil.

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