EURGBP gained sharply after the dovish rate pause. As long as support 0.8600 holds, intraday bias is bullish. Currently trading at 0.86860, it reached an intraday high of 0.86864.
In a near 5-4 MPC vote as detailed in the February 2026 Monetary Policy Report issued at 12pm GMT, the Bank of England held its key interest rate at 3.75% today, pausing further easing amid persistent inflationary pressures and economic slowing. Though CPI is expected to reach the 2% target by mid-year because of declining oil prices and government policies, projections were lowered with 2026 GDP growth at 0.9% (down from 1.2%) and unemployment reaching 5.3%. Emphasizing data dependency in light of worldwide hazards, Governor Bailey signaled construction evidence for upcoming rate reductions—probably in Q2 like April—reflecting a cautious approach following the cut in December.
Technical Analysis
The pair is currently trading above 55 and 200- EMA and 365-EMA on the 1-hour chart.
Bearish Trend Confirmation: Any break below 0.8660 confirms an intraday bearish trend. A drop to 0.8600/0.8540 is likely.
Near-Term Resistance: The near -term resistance is around 0.8725. Any violation above will take the pair to 0.8750/ 0.8780/0.8825/0.8865/0.8900/0.8950.
Indicator Analysis (1-hour chart)
CCI (50): Bullish
Average Directional Movement Index: Bullish
Trading Recommendation
It is good to buy on dips around 0.8670-6725 with SL around 0.8630 for a TP of 0.8748/0.87780.
