EUR/GBP is the ticker for forex, which informs traders how many British Pounds are required to purchase one Euro. It is among the most frequently traded currencies in the world because it is a bridge between two important European economies: The European Union (EU) and the United Kingdom (UK). Read More
EUR/GBP takes offers to refresh intraday low, prints three-day downtrend. UK GDP improved in January, Industrial Production, Manufacturing Production deteriorated. Expectations of Britain’s economic recovery, driven by the latest changes in governing […]
EUR/GBP has built a cushion around 0.8900 amid rising odds of a tight BoE policy. A breakout of the Descending Triangle has already underpinned the Euro against the Pound Sterling. Upside momentum […]
EUR/GBP gains some positive traction for the second straight day, though lacks bullish conviction. A modest downtick in the Eurozone consumer inflation caps the upside for the Euro and the cross. Abundantly […]
EUR/GBP rallied with some supply and moved away from Thursday’s near two-week high set. Bets for more interest rate hikes by the BoE and the ECB warrant caution for aggressive traders. A […]
EUR/GBP looks vulnerable around 0.8800 as hawkish BoE bets soar after a recovery in UK preliminary PMI data. Hunt in the UK is facing calls from within his Conservative Party to cut […]
EUR/GBP retreats from intraday high, snaps two-day rebound from monthly low. The one-week-old resistance line, the key Fibonacci retracement level challenges the immediate upside. 0.8840 appears a tough nut to crack for […]
EUR/GBP reverses bounce off key support confluence on strong UK employment data. The UK unemployment rate remains unchanged but the claimant count changes. Divergence between ECB and BoE policymakers may recall pair […]
EUR/GBP gains strong positive traction and snaps a seven-day losing streak to a two-week low. The softer UK CPI print weighs on the Sterling and prompts an aggressive short-covering move. Bets for […]
EUR/GBP snaps four-day downtrend ahead of the preliminary readings of the UK Q4 GDP. Key SMA confluence put a floor under the prices but downbeat oscillators keep sellers hopeful. EUR/GBP Price Analysis: […]
EUR/GBP scales higher for the fourth straight day and touches a fresh multi-month top. Expectations of additional jumbo rate hikes by the ECB continue to underpin the euro. Speculations that the BoE […]
Utilize the EUR/GBP chart to track the current euro-sterling exchange rate and get the most up-to-date information and analysis that will inform your technical and fundamental analysis. Our EUR/GBP forecast gives additional information that can aid you in planning your trading strategies.
Table of Contents
What is forex trading EUR/GBP?
The EUR/GBP currency pair shows how much value is placed on the Euro juxtaposed against British pounds. The Euro symbolizes the economy of all the members of the Eurozone. The pounds represent the British economy.It is regarded as a minor currency because it does not have the same liquidity as the other forex majors, most of which are based on those involving the US dollar. Therefore, EUR/GBP is a currency with wider spreads when dealing with brokers for forex than other major currency pairs such as GBP/USD or EUR/USD.Who first introduced the EUR/GBP pairing on January 1, 1999, when Euro was first introduced as a digital currency only before cash and banknotes were introduced on January 1, 2002.
Live chart EUR/GBP
Live charts are one of the best methods to comprehend the relation to the pair of currencies EUR/GBP. It shows the worth of the British sterling pound against the Euro.When the line graph on this live chart was trending downwards, it indicates that the value of sterling is declining concerning Euro. If the graph was trending up, it means the value of the sterling Pound is increasing against the Euro.Live charts to track the direction of the currency pair across different periods. They can be as brief as 60-second intervals or as long as the prior month or the whole year.In the end, Forex traders who depend heavily on analysis of technical aspects employ live charts of EUR/GBP to find support and resistance areas.Support lines are usually price lines where the chart goes up to favor GBP.Resistance lines are points at which the price is notably downwards, in favor of EUR. Many forex traders are trading between short and long-term support and resistance lines.
History of EUR/GBP
The EUR/GBP currency pair story is unique as it blends one of the world’s most modern fiat currencies with one of the oldest.The Euro was first launched on January 1, 1999, its EUR/GBP exchange rate was set at around PS0.70 for each EUR1. Since it was launched, there has been an oscillation range of more than 71% in the past two decades, driven by many geopolitical issues.
Factors that affect the EUR/GBP
Many elements influence the price of the currency pair EUR/GBP. Rates of interest are one of the most important factors to consider. They are set in the European Central Bank (ECB) for the Euro and the Bank of England for the pounds.When the ECB and the ECB reduce interest rates, it tends to weaken the effect on the EUR/GBP exchange rate, and the Pound is becoming stronger when compared to Euro. The same happens if the Bank of England cuts rates in the UK as well, with the Euro growing stronger and the chat displaying an upward trend line towards the Euro. Rates of interest play significant roles because they can be a metric of the stability of an economy and inflation.Other influences that affect the fluctuation of the EUR/GBP forex currency pair are economic statistics released by British and European economies. European as well as British economies.If it’s GDP, unemployment or consumer prices, and more, Who can use all of them to assess the strength of the Euro against the pounds.The political world is also a significant participant in the EUR/GBP market, as evidenced by the recent Brexit drama causing unimaginable volatility in the forex market EUR/GBP.
Role of the Euro
After 10 years of discussion and collaboration over ten years, after ten years of discussions and collaboration, the Euro was officially introduced on January 1, 1999. An open currency, monetary policies, and common currency have long been the goal of the European Union.Since the Euro’s growth as a fiat currency in January 2002, the currency has boosted the capability of businesses in the Eurozone to transact across borders, thereby stabilizing the overall economy based on the Euro.The stability of the Euro has also proved advantageous in allowing countries within the Eurozone to help each other during social and economic crises like the 2008 global recession and Covid-19.The long-term drawback of this policy is the rigidity European Union’s financial policy. The overarching policy is not a great choice for specific economic situations, especially when a particular country in the Eurozone is experiencing rapid expansion and requires higher interest rates to prevent rising inflation and overheating.
The role of the British Pound
Contrary in stark contrast to the Euro, The earliest British pound traces go in the Roman time. Its name comes from its Latin phrase ‘pounds,’ which refers to weight. An elaborate letter L inspired this PS sign associated with the British currency in Libra.In Anglo-Saxon England, the term “pound” was defined as its weight in pounds silver. Recently, the British Pound has been defined against gold and silver. The ‘gold standard’ was why the British government had to back the sterling that was in circulation with the identical amount of gold held in reserve.It is believed that GBP is currently the third most frequently used reserve currency around the globe. This is mainly due to the status of London as a world-class financial trading hub and its history as an industrial and economic powerhouse.In addition to the impact of interest rates, GDP, and inflation, global inward investment into the UK is another important factor that influences GBP if capital flows increase, and so does the Pound’s value in comparison to other top currencies such as that of the Euro or the US dollar.
Strategies for trading forex EUR/GBP
Before diving in head-first to trade the EUR/GBP currency pair, you must be aware of a strategy to trade. The most important thing you don’t want to do is end up in the wrong place in the trend line.EUR/GBP is traded with various strategies, such as short-term scalps of price action and swing trades. It is based on longer- and medium-term trends resulting from both fundamental and technical analysis. The latter is being influenced by press releases and news and officially released economic figures.
When should you buy or sell EUR/GBP?
The purchase of the EUR/GBP signifies confidence in the worth of the Pound in comparison to the Euro. By selling the EUR/GBP, it indicates that you are convinced that your Pound’s value will decline compared to the Euro.So, your trading strategies must be based on the reaction of the economy to news affecting both the UK and European economies, in addition to the indicators of technicality that indicate that there is a tendency or resistance to the Pound against the Euro.
How do I trade EUR/GBP?
If you’re ready to trade and get exposure in the EUR/GBP currency pair, there’s a wide range of forex brokers available on our website who provide contracts for difference (CFD) trading. This allows you to short (sell) EUR/GBP as well as “long” (buy) in conjunction with it.By using CFD Forex brokers, one doesn’t need to hold physical euros or pounds. Instead, you can use these brokers to create speculation positions based on the direction you believe the price will move.
Profit
To make money from trading EUR/GBP, you should ensure that your closing position is greater than the position you opened if you intend to invest in EUR/GBP.In addition, if you intend to sell the EUR/GBP, your position at the close must be less than your initial position. The profit calculation is the difference between the opening and closing trades on the market.
Close your position to make profits or reduce losses
Many forex brokers have been designed to work with top-of-the-line trading software such as MetaTrader 4 and 5. At the same time, others provide their trading software to utilize. Whatever way you choose, trading software is a breeze to close your positions on the forex market of EUR/GBP.You can utilize trading software to set take profit orders with a specified percentage and stop-loss orders to minimize your loss should the trend change your initial idea.
Select a broker and create an account
On Forex.com, we’ve spent ample time evaluating the top forex brokers based on different factors. Each one has distinct selling points that stand out from its competitors.If you’re searching for an experienced forex broker that you can trust to begin trading EUR/GBP, make time to go through our detailed reviews to help you make the right decision.
Risks
There are many potential risks to take into the equation when trading the EUR/GBP forex pair, for example:
Stop-loss devices are not being used or risk-management tools
Extreme volatility, usually caused by seismic geopolitical issues or algorithm-based trading issues
Leverage – some traders select brokers that provide excessive leverage on EUR/GBP trades which could cause losses to increase rapidly, leading to the closing of trading accounts
Conclusion
In the end, the EUR/GBP minor currency pair remains one of the most-watched currencies across the globe of trading forex.It’s also among the easiest to trade in terms of available brokers and the information available on British and European economies that can help you make informed trade decisions. It’s among the most sought-after minor forex pairs that you can trade before moving on to more fluid large forex pairings.
Live charts to track the direction of the currency pair across different periods. They can be as brief as 60-second intervals or as long as the prior month or the whole year.
In the end, Forex traders who depend heavily on analysis of technical aspects employ live charts of EUR/GBP to find support and resistance areas.
Support lines are usually price lines where the chart goes up to favor GBP.
Resistance lines are points at which the price is notably downwards, in favor of EUR. Many forex traders are trading between short and long-term support and resistance lines.
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