The GBP has performed well in recent weeks. Despite the upward trend of cable this year, the EUR/GBP has seen a decline from its high of 0.8738 on April 11, and is now finding support near 0.84, with the 200-day sma at 0.8383. The market’s optimism for the EUR in March was due to Germany’s decision to loosen its debt brake, which is believed to significantly boost growth in the country. On the other hand, the Spring Statement in the UK in March revealed a halving of the OBR’s growth forecast for 2025, highlighting the challenges faced by UK Chancellor Reeves in keeping her fiscal rules. However, recent news in the UK has been positive, leading to a rise in the value of the pound. The UK’s budget announcement on June 11 may once again shed light on its fiscal position. While this may cause some concern for GBP investors, the UK is not the only country grappling with a high level of debt. This recognition by the UK government may provide reassurance for GBP investors. In the upcoming weeks, we expect the EUR/GBP to remain close to 0.84. However, if there is no significant improvement in UK growth data, we could see the EUR/GBP climb to 0.87 over the next year. If the UK continues to deliver positive news, the 200-day sma level may be at risk, and a break below could bring the April low of 0.8323 into consideration. However, the Spending Review may cause discomfort for both the government and investors, and the EUR is also poised for potential profit-taking after its strong performance this year. Nevertheless, the EUR should receive support in the long term due to Germany’s relatively better debt position and expectations for stronger growth in the future.