EUR/GBP holds above 0.8700 as UK’s political crisis hurts the Pound

💡 DMK Insight

The Euro’s slight dip against the British Pound is noteworthy, especially as it approaches a seven-week high at 0.8745. Traders should keep an eye on this level, as a break above could signal further bullish momentum for the Euro. The recent gains suggest a shift in sentiment, possibly driven by economic data or geopolitical factors favoring the Eurozone. However, the current pullback might indicate profit-taking or a temporary consolidation phase. If the Euro can hold above 0.8700, it may attract more buyers, while a drop below this level could trigger selling pressure. Look for related movements in GBP/USD as well, since a strengthening Pound could impact the Euro’s trajectory. Monitoring economic releases from both the Eurozone and the UK will be crucial in gauging future price action. Keep an eye on the daily charts for any emerging patterns that could provide further trading signals.