Analysts see potential downside for GBP amid steady BoE policy expectations and pre-budget jitters.
The Euro trades at 0.8575 against the British Pound, remaining range-bound for ten days as momentum wanes. The mid-July rebound from below 0.8500 stalls beneath key moving averages, with strategists citing steady Bank of England policy and October budget concerns as headwinds for GBP.
Technical resistance sits at the 50-day Simple Moving Average (0.8584), with a break above targeting the 100-day (0.8630) and 200-day (0.8675) SMAs. Momentum indicators are mixed, with the RSI at 54 showing modest bullish bias, while the MACD’s fading histogram suggests weak upward conviction.
Support lies at 0.8550, followed by the psychological 0.8500 level. Analysts recommend buying EUR/GBP on dips to 0.8550, noting a break above 0.8588 could unlock further gains.