A Guide to Trading EUR GBP
As two of the most heavily traded currencies in the world, the EURGBP currency pair is a popular instrument amongst Forex traders. In this article, we provide traders with a detailed guide to trading EUR GBP.
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
Trading the EURGBP Explained
The EURGBP currency pair represents the exchange rate between the euro and the British pound.
As with all currency pairs, the first currency – in this case, the euro – is the base currency and the second currency – here, the GBP - is the quote currency.
Consequently, for example, if EURGBP = 0.8685, it means that 1 euro = 0.8685 GBP.
When the EURGBP rises, it means that the euro is strengthening against the pound. On the other hand, when EURGBP falls, it means the euro is weakening against the pound.
Traders might attempt to exploit changes in the euro to pound exchange rate by buying or selling the EURGBP currency pair. But how can you predict which way the pair will move?
There are two main methods used by traders to make EURGBP buy or sell decisions: fundamental analysis and technical analysis.
EURGBP Fundamental Analysis
Fundamental analysis in the currency market involves examining economic data to establish how an economy is performing and what the knock-on impact on its currency will be.
Remember, currency pairs express the value of one currency in terms of another currency. Consequently, when using fundamental analysis to make Forex trading decisions, traders and investors are looking at how one economy is performing relative to another economy.
There are a number of important indicators to look out for, here are some of the key ones to consider:
- Interest Rates: Base interest rates play a key role in determining the strength of a currency. Higher rates typically attract higher investment, which can strengthen a currency. Consequently, the interest rate differential between the eurozone and the UK can play a big part in determining the EURGBP exchange rate.
- Economic Growth: Stronger economic growth in one region over the other can provide a boost to the currency in question.
- Geopolitical Factors: Political events or global crises can have an effect on the EURGBP currency pair. For example, in 2016, the results of the Brexit referendum caused the price of EURGBP to plummet.
- Balance of Trade: The balance of trade between the euro area and the UK can also affect the balance between the two currencies. For example, if the euro area records an increasing trade surplus with the UK, the resultant increase in demand for the euro can strengthen the single currency against the GBP.
EURGBP Technical Analysis
Many traders prefer to base their trading decisions on technical analysis, which involves studying historical price movements to predict where price will move next. Below are the main methods which traders use when trading the EURGBP currency pair:
- Candlestick Patterns: Candlestick patterns form over several candlesticks on a price chart and can be used to gauge current market sentiment.
- Chart Patterns: Chart patterns form on price charts, developing over a longer sequence of sessions than candlestick patterns.
- Technical Indicators: Indicators such as moving averages, Bollinger Bands and the Stochastic Oscillator can also be used by traders to help identify potential buying and selling opportunities in the markets.
EUR GBP Forecast
In the Forex market, 2025 has been largely characterised by a weakening US dollar.
As investors reassess their exposure to the US, the euro and the GBP have benefitted from increased capital inflows, with both currencies gaining strength over their transatlantic rival.
Of the two, the euro has been the bigger beneficiary, strengthening considerably over the USD, but also against the pound. In the first eight months of 2025, EURGBP pair has risen more than 5%, as the euro has strengthened against the pound.
So, what is the EUR GBP forecast for the months ahead? Some things traders will want to keep an eye on are:
- Interest Rates: The European Central Bank (ECB) has been far quicker to lower interest rates than the Bank of England (BoE). At the time of writing, 3 September 2025, the ECB’s benchmark interest rate is 2%, whilst the BoE base rate remains at 4%.
- Inflation: Inflation rates will play a big role in determining interest rate decisions for the ECB and BoE in the coming months. Whilst the euro area inflation rate is near target levels, UK inflation is currently almost double the BoE’s target.
- Economic Growth: Both the euro area and the UK are currently experiencing slow growth. In the second quarter of 2025, the euro area grew just 0.1% whilst the UK grew by 0.3%.
How to Trade EUR GBP
With Admiral Markets, traders can buy or sell the EURGBP currency pair using Contracts for Difference (CFDs). You can start trading EURGBP by following these steps:
- Register for a Trade.MT5 account.
- Log in to the Dashboard.
- Click ‘Trade’ next to your account details to open the Admiral Markets Platform.
- Search for EURGBP and open the instrument page.
- Enter the number of lots of EURGBP you wish to buy or sell.
- Enter stop loss and take profit levels.
- Hit ‘Buy’ or ‘Sell’ to send your order to the market.
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Frequently Asked Questions
When was the pound strongest against the euro?
The pound was strongest against the euro in May 2000, when the EURGBP currency pair fell to an all-time low of 0.57110.
What does it mean to sell EURGBP?
If you sell the EURGBP currency pair, it means you are simultaneously selling the euro and buying the pound. Consequently, traders that sell the EURGBP are predicting that the pound will strengthen against the euro.
Will the pound get stronger against the euro?
Whether or not the pound will get stronger against the euro depends on a number of factors including, but not limited to, future monetary policy decisions by the Bank of England and the European Central Bank, and the future economic growth trajectories of the UK and the euro area.
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