The Euro (EUR) failed to hold above 0.8700 against the British Pound (GBP) on Friday and pulled back to session lows near 0.8685 in the early European session. The pair, however, remains on track to close its first positive week in two months, fuelled by the ECB-BoE policy divergence.
💡 DMK Insight
The Euro’s slip below 0.8700 against the Pound signals potential volatility ahead. Traders should note that this pullback to 0.8685 comes after a brief rally, suggesting that while the Euro is closing its first positive week in two months, the momentum may be stalling. The divergence in monetary policy between the ECB and BoE is a critical factor here; if the ECB continues to signal a hawkish stance while the BoE remains cautious, we could see further pressure on the Euro. Watch for key resistance around 0.8720—if it can’t reclaim that level, the bearish sentiment could strengthen. On the flip side, if the Euro manages to stabilize and push back above 0.8700, it could signal renewed bullish interest. Keep an eye on economic indicators from both regions, as any surprises could lead to sharp moves. For now, monitor the 0.8680 support level closely; a break below could trigger further selling pressure.
📮 Takeaway
Watch the 0.8680 support level closely; a break could lead to increased selling pressure on the Euro against the Pound.






