EUR/GBP is rapidly approaching the 0.8500 mark, marking its lowest point since August, with financial experts at MUFG Bank providing insights into the currency pair’s future prospects.
Analysts at MUFG Bank have noted the potential for further strengthening of the British Pound (GBP) against the Euro (EUR). Maintaining a bullish stance on the US Dollar (USD), they anticipate that if the GBP responds positively to a Bank of England (BoE) policy update that is less dovish than anticipated, the EUR/GBP pair could experience additional downward momentum.
The current trajectory of EUR/GBP brings it close to the 2023 low of 0.8493, and should this support level be breached, analysts suggest the likelihood of a more accelerated descent to the 0.8400 level. The last time this level was observed was in August 2022, signifying a potentially significant shift in the exchange rate dynamics.
