EUR/GBP

EUR/GBP is the ticker used to represent the Euro and British Pound currency pair on forex markets. The EUR/GBP chart shows traders how many British Pounds are needed to buy a single Euro. It is one of the most actively traded currency pairs in the world because it marries two significant European economies: the European Union (EU) and the United Kingdom (UK). The demand for the currency pair makes it important for traders to understand the live chart and what can impact the Euro-Sterling rate.

What is the EUR/GBP Currency Pair?

EUR is the three-letter code used to describe the Euro, the currency of the European Union (EU), although it has only been adopted by 19 of the EU’s 28-member states so far. GBP represents the Pound Sterling – the currency of the United Kingdom, as well as UK Crown Dependencies like the Isle of Man and the Channel Islands. 

The EUR/GBP pair combines two of the most frequently traded currencies in the world – the Euro is second only to the US Dollar (USD). In fact, both the Euro and the British Pound are considered ‘majors’.

EUR/GBP is commonly known as Euro-Sterling, or occasionally by its nickname, ‘Chunnel’, in reference to the channel tunnel that connects the UK to the rest of Europe.

A Brief History of EUR/GBP

The EUR/GBP pair is considered a young currency pairing because it only began trading on 1 January 1999, when the Euro was created. While the UK remained part of the European Union, it opted out of using the EU currency and remained under the control of the Bank of England (BoE). 

During the 2008 global financial crisis, the BoE was more active in cutting rates than the European Central Bank (ECB), which caused the Euro to strengthen against the Pound. Historically, the exchange rate had remained in the 0.6100 to 0.7000 range, but the recession caused the pair to trade as close to parity as the markets have ever seen – reaching 0.9600 in January 2009.

The EUR/GBP rate entered another period of uncertainty after the UK voted to leave the EU in June 2016, in what became known as ‘Brexit’. The political relationship between the two economies began to fracture and the EUR/GBP pair experienced considerable volatility.

What Affects the EUR/GBP Rate?

A number of factors can influence the EUR/GBP forecast, including:

  • Central Bank Policy: The pair is particularly sensitive to changes in monetary policy made by the European Central Bank and the Bank of England
  • Politics: EUR/GBP is thought of as a politically dominated pair, influenced by decisions of both the UK government and governing bodies of the EU. Most recently, the Euro-Sterling rate has been extremely sensitive to the Brexit negotiations
  • Economic Data Releases: It is important to keep an eye on macroeconomic data releases from both economies, such as Gross Domestic Product (GDP) and inflation rates set by central banks

Traders should remain up to date with any announcements and data releases that could move the real-time price of EUR/GBP. For live analysis, view our EUR/GBP news and technical analysis articles below.

Why is EUR/GBP Attractive to Forex Traders

The economies of the UK and EU are intertwined due to the large amounts of capital exchanged between them daily. This has kept the Euro-Sterling rate relatively stable and made the pair a popular hedge against global instability.

However, recent events have caused EUR/GBP to become increasingly volatile, which creates opportunities for traders to profit from price movements.

Although the British Pound is a major global currency, it’s not as liquid as the Euro. This means that in periods of increased interest, such as around the Brexit referendum, prices can change very quickly.

Using the EUR/GBP Chart

EUR/GBP is one of the most popular currencies on the forex market, so it is important to know how to read the EUR/GBP live chart.

In the Euro-Sterling pair, the Euro is the base currency or the currency that you are buying, while the Pound is the quote currency, or the currency being sold. EUR/GBP shows traders how many Pounds are required to purchase a single Euro. So, if the price of the pair is 0.8900, this means that it costs £0.89 to buy €1.

When you see the price increasing on the chart, it could mean one of three things. It could mean that the Euro is strengthening, that the Pound is weakening, or that both are happening simultaneously. Some traders will apply various forms of technical analysis to their charts to make EUR/GBP forecasts. Whether you look at price patterns or fundamental news events, the chart can give you a sense of current trends.

View More

EURGBP chart

EURGBP chart by TradingView

Pivot Points data provided by IG

Support & Resistance

EUR/GBP
S10.8698 M R30.8923 M
S20.8668 M R20.8838 S
S30.8620 M R10.8811 M
Trend
down
Advertisement

News


GBP/USD & EUR/GBP Price Chart Outlook: Flagging at Confluence

Spot GBPUSD sits at major confluence and multi-year Fib support but could be strong-armed by its overarching downtrend. Meanwhile, spot EURGBP upward momentum appears to be waning.
Continue Reading


Euro Price at Risk as Implied Volatility Spikes Ahead of ECB


EURGBP Uptrend May Soon Retreat as Pair Test 9-Month Resistance


Pound Collapse Continues Unrestrained by Brexit Uncertainty


Euro Technical Analysis Overview: EURUSD, EURGBP Levels to Watch


Real Time News


Analyst Picks

Paul Robinson

Paul Robinson Currency Strategist

My Picks: USDCAD & EURGBP
Expertise: Technical
Average Time Frame of Trades: Several days to several weeks

Advertisement

Get Your Free Top Trading Opportunities Forecast

Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

Your forecast is headed to your inbox

DailyFX.com – the news, research and analysis website provided by IG – is one of the world's leading sources for news and analysis across currencies, commodities and indices.

Discover our extensive calendar of free educational webinars and test your trading skills, risk-free, with an IG demo account.

Read more articles on DailyFX

An error occurred submitting your form.
Please try again later.

Advertisement

Market Datadata provided by IG

Symbol Bid Ask Spread
Market Data figures are provided for the trading day.
Symbol Bid Ask Spread
Market Data figures are provided for the trading day.

Forex Economic Calendar

A:  Actual   F:  Forecast     P:  Previous