EUR/GBP Breaks 0.8825 Resistance: Bullish Momentum as Traders Eye BoE Rate-Cut Outlook

EUR/GBP breaks above 0.8825 resistance, signaling bullish momentum. Traders expect buyers on pullbacks as markets price possible BoE rate cuts and FX shifts.

EUR/GBP has broken convincingly above the key resistance level at 0.8825, confirming bullish momentum in the cross. This breakout suggests that buyers are in control for now, and many forex traders will look for pullbacks to add long positions as expectations build around Bank of England (BoE) rate cuts.

Technical traders flagged 0.8825 as a pivotal barrier: a sustained close above this price indicates a shift from range-bound action to a more directional uptrend. The exchange rate reaction has been accompanied by increased volume and follow-through buying, reinforcing the idea that support could now form on dips. For those trading the EUR/GBP, the focus will be on identifying reliable pullback levels and watching for retests of 0.8825 to confirm the new support zone.

Macro context matters. Markets are increasingly pricing in BoE rate cuts amid slowing UK growth and cooling inflation, which tends to weigh on the pound. At the same time, the euro has shown relative resilience, supported by firmer economic data and shifting ECB expectations. The combination of softer sterling outlook and steadier euro fundamentals provides a favorable backdrop for further gains in EUR/GBP.

What traders can consider: Using the breakout above 0.8825 as a reference, look for healthy pullbacks toward nearby technical zones—previous resistance, moving averages, or Fibonacci retracements—to enter long positions with better risk-reward. Keep stops below confirmed support levels and size positions to account for potential volatility around economic releases and BoE commentary.

Risk management remains crucial. Breakouts can fail, and central bank guidance or unexpected UK data can quickly change the narrative. Maintain clear stop-loss levels, avoid overleveraging, and monitor correlated markets such as GBP crosses and euro-dollar moves for additional signals.

In summary, the EUR/GBP breakout above 0.8825 confirms bullish momentum and positions buyers to step in on pullbacks as markets price potential BoE rate cuts. Traders should combine technical setups with macro awareness—watching BoE communications, UK economic releases, and eurozone developments—to navigate the next moves in this major forex pair.

Back