empty
04.02.2025 12:54 PM
EUR/GBP. Analysis and Forecast

This image is no longer relevant

Since the start of the European session today, the EUR/GBP pair has been attempting to recover, finding support near the round level of 0.8300.

This image is no longer relevant

However, fundamental factors continue to support a bearish sentiment among traders, opening the door to further losses. The euro is showing weak performance amid concerns that the U.S. President Donald Trump might impose tariffs on goods from the European Union. This situation is further aggravated by the dovish stance of the European Central Bank (ECB), overshadowing the growth of the Eurozone Harmonized Index of Consumer Prices (HICP), which reached 2.5% year-on-year in January.

Last week, the ECB lowered borrowing costs by 25 basis points, as expected, and left the door open for further rate cuts by the end of the year. This exerts additional pressure on the euro and reinforces the short-term negative outlook for the EUR/GBP cross.

However, traders may hold back from opening aggressive positions, awaiting the Bank of England meeting scheduled for Thursday.

These factors suggest a continuation of the nearly two-week downward trend, implying that any recovery attempts could be viewed as selling opportunities and are likely to remain limited.

Nonetheless, traders might prefer to stay on the sidelines in the absence of significant macroeconomic data today and instead focus on upcoming central bank events.

From a technical standpoint, the Relative Strength Index (RSI) remains in negative territory and is close to the oversold zone. As a result, a corrective rebound is possible in the short term, but any attempt at recovery should be viewed as an opportunity to sell.

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

Markets May React to New U.S. Tariffs with Growth—But Under One Condition... (GBP/USD Downside and USD/CAD Upside Possible)

The day Donald Trump declared "Liberation Day" has arrived. Markets are bracing for the U.S. to introduce comprehensive and large-scale tariffs on its trade partners and potential retaliatory measures from

Pati Gani 09:51 2025-04-02 UTC+2

The Market Needs Proof

It's too late to be afraid. Rumors are circulating in the market that the White House may implement a universal 20% levy instead of reciprocal tariffs—pushing the average import duty

Marek Petkovich 09:16 2025-04-02 UTC+2

What to Pay Attention to on April 2? A Breakdown of Fundamental Events for Beginners

There will be very few macroeconomic events on Wednesday, but yesterday showed us that even a large number of macro reports do not always trigger significant movement—even within

Paolo Greco 06:25 2025-04-02 UTC+2

GBP/USD Pair Overview – April 2: The Pound Still Stuck in Place

The GBP/USD currency pair continues to trade in a flat range. On the 4-hour timeframe, this is a classic flat; on the lower timeframes, it looks more like a "swing."

Paolo Greco 05:14 2025-04-02 UTC+2

EUR/USD Pair Overview – April 2: The Dollar Gets Unlucky Again

The EUR/USD currency pair continued trading sluggishly and reluctantly on Tuesday. The market continued anticipating new tariffs from Donald Trump, even though the macroeconomic background was very strong yesterday. While

Paolo Greco 05:13 2025-04-02 UTC+2

Bitcoin caught in bull trap

The bottom shows no strength, the top has no desire. Even the so-called "smart money" is not rushing to buy Bitcoin, citing a confluence of negative factors. Tepid trading activity

Marek Petkovich 15:58 2025-04-01 UTC+2

USD/JPY. Analysis and Forecast

Today, the USD/JPY pair is struggling to benefit from a slight intraday upward movement, especially amid expectations that the Bank of Japan may raise interest rates at a faster pace

Irina Yanina 11:37 2025-04-01 UTC+2

US stock market: bad news fully priced in

The S&P 500 had its worst quarter in three years. Investors are shifting capital from North America to Europe. Once-booming US tech stocks have collapsed. Major banks and respected institutions

Marek Petkovich 09:13 2025-04-01 UTC+2

April to play crucial role in Europe's gas future

Europe's gas sector is entering a critical phase, as the end of the heating season sets the stage for refilling storage facilities, which are now two-thirds empty after the winter

Miroslaw Bawulski 13:01 2025-03-31 UTC+2

WTI – West Texas Intermediate. Prices Lack Support for Growth

West Texas Intermediate (WTI) crude oil prices are attempting to attract buyers, but the market remains in a state of uncertainty. Concerns over President Trump's aggressive trade tariffs are putting

Irina Yanina 12:39 2025-03-31 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.