The 4-hour chart shows EUR/GBP at 0.8735, nearly unchanged daily. The MACD indicator, turning positive near zero, indicates growing bullish momentum, while the RSI at 57 suggests rising upside pressure.
Immediate Resistance And Support Levels
Immediate resistance is near 0.8739, with further targets at 0.8773 and around 0.8800. Support lies at Tuesday’s low of 0.8706, before mid-October lows between 0.8655 and 0.8665.
The British Pound shows strength against major currencies today, particularly against the New Zealand Dollar. The percentage change heat map assists in comparing currency performances, using the left column as the base and the top row as the quote.
The EUR/GBP is showing strength as we close the year, pushing toward the 0.8740 resistance level. We are seeing this happen on very light holiday volume, which can sometimes exaggerate price moves. As we enter the first weeks of January 2026, the return of full market participation will be the real test of this upward momentum.
Strategies For Traders
For those expecting this rally to continue, buying call options with a strike price above the 0.8775 level could be a viable strategy for the coming weeks. This bullish view is supported by the Eurozone’s recent November inflation figure, which at 2.8% keeps the European Central Bank from considering any near-term rate cuts. This contrasts with the UK, where Q3 2025 GDP figures were revised down to -0.2%, increasing pressure on the Bank of England to ease policy in the new year.
However, we see significant resistance building up to the 0.8800 level, which has capped rallies multiple times this past December. Traders who believe this level will hold could consider buying put options or establishing bear put spreads if the price fails to break decisively above 0.8740 next week. Historically, we have seen year-end trends reverse in the first full trading week of January, as was the case back in 2024 when initial momentum faded.
The conflicting economic signals between the Eurozone and the UK suggest that volatility could increase sharply in early 2026. Given the uncertainty around the key 0.8800 resistance, a long straddle option strategy could be used to profit from a large price move in either direction. This approach would benefit whether the pair breaks strongly higher on positive Euro data or reverses sharply on renewed Sterling strength.
