BOE 5-4 Bloodbath Gifts EURGBP Bulls 0.8780 Golden Dip – 0.8900 or Bust

EURGBP showed a minor sell-off after the BOE monetary policy.  As long as support 0.8750 holds, intraday bias is positive. Currently trading at 0.88006, it reached an intraday high of 0.88186.

With Governor Andrew Bailey delivering the final hit against a 25bps decrease, the Bank of England clung to 4% rates by the skin of its teeth—5-4—in a dramatic November 7 vote, smashing doves Sarah Breeden, Swati Dhingra, Dave Ramsden, and Alan Taylor while high-fiving hawks Clare Lombardelli, Catherine Mann, Megan Greene, and Huw Pill. The BOE aired dirty laundry for the first time: Bailey demanding ironclad proof that September's 3.8% inflation surge is buried; Breeden switching to Team Cut, citing rising slack; Greene snarling that policy is still not tight enough. Suddenly, "balanced," inflation risks are cooling; markets are now betting 60% on a pre-Christmas slashing—particularly with softer October/November CPI approaching and the Autumn Budget coming on November 26. One clean inflation print turned Threadneedle Street into a powder keg; Bailey's smile transforms into rate-cut confetti.

Technical Analysis

The pair is currently trading above 55 and 200- EMA and 365-EMA on the 4-hour chart.

Bearish Trend Confirmation: Any break below 0.8750 confirms an intraday bearish trend. A drop to 0.8700/0.8660/0.8630/0.8600/0.8560/0.8520/0.8480 is likely.

Near-Term Resistance:  The near-term resistance is around 0.8830. Any violation above will take the pair to 0.8850/0.8900.

Indicator Analysis (4-hour chart)

CCI (50): Bullish

Average Directional Movement Index:  Bullish

Trading Recommendation

It is good to buy on dips around 0.8780-85 with SL around 0.8720 for a TP of 0.8900.