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EUR/GBP rises 0.3% as euro firms on rate-hike hopes

The pair is back above the daily Ichimoku cloud, but bulls need a sustained break above 0.8600 to fully confirm continuation.

Reported · Written up by our desk · Major Pairs

EUR/GBP climbed 0.3% on Wednesday, with the euro supported by a weaker US dollar and expectations that the ECB could join other major central banks in a tightening cycle, according to Action Forex.

The outlet said the Bank of England is likely to take a more cautious stance, keeping rates on hold, which leaves sterling positioned defensively.

Action Forex also pointed to technical retracement and chart signals, noting the rebound has retraced more than 61.8% of a 0.8607 to 0.8564 pullback, and that holding above the daily Ichimoku cloud top near 0.8572 supports a positive near term outlook.

Still, the analysis emphasized that a sustained move above the 0.8600 pivot is required to bring bulls fully into play and strengthen the case for a continuation rally from the July 15 low at 0.8454.

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