EUR/GBP Dips from Double Top at 0.8750 as BoE's Cautious Stance Fuels Volatility

EURGBP formed a double top around 0.8750 and pared some of its gains from that level.  As long as support 0.8678 holds, intraday bias is still positive. Currently trading at 0.87268, it reached an intraday low of 0.87134.

In September 2025, the Bank of England (BoE) maintained its benchmark interest rate at 4% with a 7-2 committee vote, reflecting a cautious stance on further rate cuts amid persistent 3.8% inflation—nearly double the 2% target—and weak economic growth, with July GDP flat and only 0.2% expansion in the prior three months. Governor Andrew Bailey emphasized a "gradual and careful" approach, citing elevated wage growth and services inflation as ongoing concerns, while a divided committee, with hawkish members like Megan Greene opposing cuts and dovish voices like Swati Dhingra pushing for easing, highlighted uncertainty ahead of the November 6 meeting and the Autumn Budget. Markets now expect just a one-third chance of a year-end cut, with rates projected to fall to 3.75% by the end of 2025, as the BoE prioritizes inflation control over supporting growth in a complex economic environment with fiscal uncertainties looming.

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 0.86780 confirms an intraday bearish trend. A drop to 0.8630/0.8600/0.8560/0.8520/0.8480 is likely.

Near-Term Resistance:  The near -term resistance is around 0.8750. Any violation above will take the pair to 0.8800/0.8850.

Indicator Analysis (4-hour chart)

CCI (50): Bullish

Average Directional Movement Index:  Neutral

Trading Recommendation

It is good to buy on dips around 0.8700 with SL around 0.8660 for a TP of 0.8800.