Today, Thursday, the EUR/GBP pair nearly reached the round level of 0.8700. The euro strengthened against the British pound amid expectations that French President Emmanuel Macron will appoint a new prime minister within the next 48 hours. Later in the day, the European Central Bank will release its monetary policy meeting report, and ECB member Philip Lane is scheduled to speak.

The political crisis in France, triggered by the unexpected resignation of Prime Minister Sebastien Lecornu and his cabinet, pressured the euro during the previous session. On Wednesday, President Emmanuel Macron stated that within the next 48 hours he would once again attempt to appoint a new prime minister and put an end to the country's instability.

This statement is currently supporting the euro, but the ongoing political uncertainty in France could limit further growth of the pair.

Regarding the British pound, on Wednesday Bank of England Chief Economist Huw Pill noted that central banks should adhere to a "conservative" approach to interest rates, including the possibility of tightening if inflation accelerates sharply. GBP's growth potential is limited by increasing uncertainty over the Bank of England's future policy.

The latest Financial Policy Committee report from the Bank of England highlighted that UK households and businesses remain resilient despite high living costs and loan interest rates. The document also emphasized that global risks remain elevated, and potential negative consequences for the UK financial system are considered significant.

From a technical perspective, the Relative Strength Index on the daily chart is attempting to move into positive territory, but has not yet confirmed a bullish outlook. If prices can break above the round level of 0.8700, the next target will be around 0.8730, on the way to the September high near 0.8753.

The EUR/GBP pair has found support at the 50-day SMA, currently set at 0.8675. If prices fail to hold this level, the next support on further decline will be around 0.8655.