EUR/GBP Plunges Below 0.8550 as BoE Hawkishness Weighs on Euro

The EUR/GBP cross has extended its decline below 0.8550, with bearish momentum intensifying as it faces renewed selling interest.

Technical indicators point to further downside potential if key support levels fail to hold, with the pair trading below its 20-day and 50-day simple moving averages.

The recent weakness in EUR/GBP reflects diverging monetary policy expectations between the European Central Bank (ECB) and the Bank of England (BoE), with the BoE maintaining a more hawkish stance due to inflation remaining stubbornly above target.

For forex traders, the break below 0.8550 is a significant technical event, confirming a continuation of the downtrend that has been in place since late 2024.