EUR/GBP Dips After BoE Holds: Is the Bullish Trend Still Intact?

EURGBP pared some of its gains after the BOE's monetary policy. Intraday bias remains bullish as long as support 0.8480 holds. It hits an intraday low of 0.85348 and is currently trading around 0.85432.

The Bank of England opted to maintain its policy rate at 4.25% in June 2025, reflecting a measured approach in light of ongoing inflationary pressures—CPI stood at 3.4% in May—and continued global uncertainty, including elevated oil prices due to tensions in the Middle East. The Monetary Policy Committee’s 6-3 vote to hold rates highlights an emphasis on gathering more definitive evidence of sustained disinflation, particularly regarding services, wage growth, and energy costs. As a result, the prospect of further monetary easing will depend on forthcoming economic data, with attention now turning to August as the possible window for the next rate adjustment, contingent upon inflation trends and broader economic developments.

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 0.8480 confirms an intraday bearish trend. A drop to 0.84425/0.8400/0.8378/0.8340/0.8300 is likely.

Near-Term Resistance:  The near-term resistance is around 0.8565. Any violation above will take the pair to 0.8605/ 0.8660/0.8765/0.8800.

Indicator Analysis (4-hour chart)

CCI (50): Bullish

Average Directional Movement Index:  Neutral

Trading Recommendation

It is good to buy on dips around 0.8500 with SL around 0.8480  for a TP of 0.8605.