The EUR/GBP is the currency pair of the two largest European currencies: the British pound and the euro. It is a rather liquid pair, as both belong to the most traded currencies world-wide with the most active trading noted in the European Union.
This cross is considered to be one of the most predictable, thus, even beginners can trade this pair.
The British pound exchange rate is mainly impacted by energy prices,
trade with the United States, key interest rate changes made by the Bank of
England, the input price index, and some others. When making a forecast on
EUR/GBP, it is necessary to estimate all main changes in the
economies of the U.K. and EU. Moreover, analysts should follow
announcements of British and European officials as they may also affect
the pair’s price.
The U.S. dollar also has significant influence on this pair. As the greenback has an impact on the euro and pound, experts should take into consideration the US main economic factors when forecasting the pair's price, i.e. the discount rate, GDP value, unemployment rate, and new jobs numbers.