0.8360 within reach: EUR/GBP price forecast as euro bulls grow more confident

• 0.8360 is coming into view for EUR/GBP. The pair’s recovery gathers pace on Tuesday as it approaches the top of its trading range.
• Falling oil prices support the Euro, but the BoE’s hawkish stance limits the Pound’s downside.
• A decisive move above 0.8360 would establish a bottom at 0.8320, bringing the 0.8400 region into focus.

0.8360 marks the upper boundary of the recent trading range. On Tuesday, the Euro (EUR) extends its advance against the British Pound (GBP) at a faster pace, following a modest recovery over the previous three days. Lower oil prices and improved market sentiment underpin the move. The EUR/USD pair is still confined to the 0.8320–0.8360 range seen over the past two weeks, though momentum indicators suggest an emerging bullish impulse.

Against the US Dollar, both currencies have advanced over the past few days. However, the Euro has held a slight edge as oil prices have fallen sharply. Brent Oil has lost 20% in about a week, substantially easing the burden on Eurozone economies.

For the Pound, support comes from the hawkish monetary policy stance adopted by the Bank of England (BoE) following last week’s decision. Last Thursday, the BoE raised its Bank Rate by a quarter point to 4%, as expected, while signalling that further monetary tightening remained possible. Thursday’s UK Gross Domestic Product (GDP) and Industrial Production releases will be scrutinised for confirmation of those projections.

0.8360 Break Would Put 0.8400 in Focus: Technical Analysis

At 0.8358, EUR/GBP has a modest bullish bias in the immediate term. It nevertheless remains inside a 40-pip band just above 19-month lows. On the four-hour charts, momentum indicators have moved into positive territory. The Relative Strength Index (14) sits just below 60, while the Moving Average Convergence Divergence (MACD) is marginally above zero, suggesting buyers still have the short-term advantage.

To confirm a more substantial correction, buyers need to overcome resistance at 0.8360-0.8365, the area of the 30 October and 3 November highs. That would open the way towards the 26 October high around 0.8400, followed by the 19 and 20 October highs near 0.8430.

If the pair turns lower and slips beneath the range floor at 0.8320, the late February 2025 highs just above 0.8300 could provide some support. Beyond that lies the 2025 low of 0.8246.

(The technical analysis of this story was written with the help of an AI tool. Know more.)