EUR/GBP started the week with an increase, continuing the bullish momentum from the previous week. Although the next actions of the European Central Bank (ECB) regarding interest rates remain uncertain, traders hope that the rise of euro will persist, especially in relation to this pair.
Last Wednesday, Bank of England Governor Andrew Bailey warned that borrowing costs may continue to increase due to consistently high inflation. However, the central bank may soon end its series of rate hikes, and this may limit any significant gains in pound, thereby providing room for euro to rise in this pair.
Additionally, important economic data for the UK will be released today, including the GDP report for the region.
Technical analysis also supports the notion of euro's rise in this pair, at least up to the level of 0.86106 in the spot market.
