The Euro (EUR) is strengthening against the British Pound (GBP) on Tuesday, extending gains from the previous three days. This uptick is supported by falling oil prices and an improved market sentiment. The EUR/GBP pair is currently trading within a narrow range of 0.8320 to 0.8360, with momentum indicators suggesting a bullish impulse.
Both the Euro and the Pound have risen against the US Dollar recently, but the Euro has a slight edge due to the sharp decline in Brent Oil prices, which have dropped 20% in about a week. This decline has eased economic pressures on Eurozone economies.
The Pound is finding support from the Bank of England's (BoE) hawkish monetary policy stance. Last Thursday, the BoE raised its Bank Rate by a quarter point to 4% and hinted at further tightening. Upcoming UK GDP and Industrial Production data, due on Thursday, will be closely watched to validate these projections.
Technically, EUR/GBP is trading at 0.8358, with a modest bullish bias. To confirm a deeper correction, bulls need to break resistance at the 0.8360-0.8365 area, which could pave the way for a move towards 0.8400 and 0.8430. On the downside, support is seen at 0.8320, with further support near 0.8300 and 0.8246.