Market Updates And Analysis

EUR/GBP has risen after breaking out of its long-term trading range in October. The currency pair hit a temporary high around 0.8820, with key support levels now at 0.8740 and 0.8710. The upper limit of the previous range and the 50-day moving average may serve as important support levels. If the price stays above 0.8820, the next targets to watch are 0.8870 and 0.8910. The FXStreet Insights Team, made up of skilled journalists, provides frequent market updates. They gather information from leading analysts, merging commercial insights with internal analysis. Additional financial updates include GBP/USD trading between 1.3065 and 1.3230. EUR/USD remains steady around 1.1570 ahead of the US ADP data, while Bitcoin Cash shows strong potential with a 1% increase. Last month, we saw EUR/GBP break out of its long-term range, and this upward trend looks likely to continue. Pay close attention to the support levels between 0.8740 and 0.8710, as these were previously resistance levels. If the price remains above this area, we can expect further gains.

Economic Divergence And Trading Strategies

This upward trend is supported by differing economic forecasts. Recent data from the ONS revealed that UK inflation unexpectedly rose to 3.1%, while Q3 GDP growth was revised down to just 0.1%. This weak information has a negative effect on the Pound Sterling, adding to the bearish sentiment we’ve seen over the past few months. In contrast, the Eurozone shows more stability, with recent inflation holding steady at a manageable 2.4% and indications of improvement in German manufacturing PMIs. This economic gap makes long Euro positions against the Pound especially appealing. The European Central Bank has a clearer path compared to the Bank of England, which is struggling to balance inflation control with stimulating a sluggish economy. For traders in derivatives, this trend suggests that buying call options with strike prices above the current level, perhaps around 0.8850, could be an effective strategy for the upcoming weeks. It’s also important to use the 0.8710 level for protective put strategies or stop-loss orders on futures positions to manage risk. Keep an eye on the next potential price targets of 0.8870 and then 0.8910. This breakout is notable, especially when we remember the consistent range-bound trading during much of 2023 and 2024, where the pair found it difficult to stay above 0.87. The current momentum feels much stronger than the brief spikes we witnessed earlier. The combination of a solid technical setup and supportive economic data reinforces the possibility of continued upward movement. Create your live VT Markets account and start trading now.

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