See also
04.02.2025 12:54 PM
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.
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.
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?
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 InstaTrade anyway.
We are sorry for any inconvenience caused by this message.
