The Euro to Pound Sterling (EUR/GBP) exchange rate edged higher to 0.8681 after rebounding from last week’s pullback from the 0.8720 area.
EUR/GBP remains within the broad upward trend that has dominated much of the past year, with EUR/GBP up around 3% over the last 12 months.
Lloyds Bank notes that the Euro to Pound rate has reversed from Friday’s push above 0.8720, although the broader technical picture still points towards consolidation before another move higher.
“Ultimately this ought to lead to a renewed push higher.”
The bank highlights that price action throughout 2026 continues to resemble a consolidation phase following the strong EUR/GBP rally seen during 2025.
According to Lloyds, the key near-term hurdle remains the 0.8740/50 resistance zone, which the market needs to reclaim in order to build stronger upside momentum.
“The first part would be a move back through the 0.8740/50 band.”
Lloyds adds that dips towards 0.8687 and 0.8670 are expected to attract buyers, reinforcing the broader constructive outlook for the pair.
KEY FORECAST:
Lloyds Bank maintains a bullish bias for the Euro to Pound Sterling exchange rate (EUR/GBP), expecting the broader trend to remain higher while support levels continue to hold.
