The 4-hour chart shows that EUR/GBP is at 0.8735, which is almost the same as yesterday. The MACD indicator is becoming positive near zero, signaling growing bullish momentum. Meanwhile, the RSI at 57 indicates increasing upward pressure.

Immediate Resistance and Support Levels

The first level of resistance is around 0.8739, with further targets at 0.8773 and near 0.8800. On the support side, we see Tuesday’s low of 0.8706, followed by mid-October lows between 0.8655 and 0.8665. Today, the British Pound is showing strength against major currencies, especially the New Zealand Dollar. The percentage change heat map makes it easy to compare how different currencies are performing, using the left column as the base and the top row as the quote. As we near the end of the year, EUR/GBP is gaining strength, approaching the 0.8740 resistance level. This rise is happening with low holiday trading volume, which can sometimes lead to exaggerated price changes. Once we move into January 2026, the return of full market activity will test this upward momentum.

Strategies for Traders

If you think this rally will continue, buying call options with a strike price above 0.8775 could be a good strategy for the upcoming weeks. This optimistic view is supported by the Eurozone’s November inflation rate of 2.8%, which keeps the European Central Bank from considering rate cuts soon. In contrast, the UK saw a downward revision in Q3 2025 GDP figures to -0.2%, increasing pressure on the Bank of England to ease policy in the new year. However, there is strong resistance near the 0.8800 level, which has capped rallies several times this past December. Traders who believe this resistance will hold might think about buying put options or setting up bear put spreads if the price doesn’t break clearly above 0.8740 next week. Historically, year-end trends have reversed during the first full trading week of January, as seen in 2024 when the initial momentum faded. The mixed economic signals from the Eurozone and the UK suggest that we could see increased volatility early in 2026. With uncertainty around the key 0.8800 resistance, a long straddle option strategy could help profit from a significant price move in either direction. This approach can benefit whether the pair jumps higher due to positive Euro data or drops sharply because of renewed Sterling strength. Create your live VT Markets account and start trading now.

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