EUR/GBP Soars as Dovish BoE Fuels Bullish Momentum, Targeting 0.8765

EURGBP jumped sharply on weak UK economic data. Intraday bias remains bullish as long as support 0.8580 holds. It hits an intraday high of 0.86799 and is currently trading around 0.86762.

Bank of England Governor Andrew Bailey discussed many important economic issues in his July 22, 2025, speech, calling for coordinated worldwide solutions to imbalances, including U. S. deficits and weak Chinese consumption, with the IMF and WTO taking more proactive positions. Financial stability hazards for deficit nations were emphasized by him, along with the need of multilateral cooperation for world development; he also emphasized alertness. Domestically, Bailey pointed out ambiguities in UK economic activity and inflation, thus suggesting a data-driven approach for future monetary policy choices without pre-committing to rate adjustments. Though he was dubious of retail central bank digital currencies and favored upgrades to current digital systems, he also showed openness to digital payment solutions and stablecoins.

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 0.8580 confirms an intraday bearish trend. A drop to 0.8520/0.8480/0.84425/0.8400/0.8378/0.8340/0.8300 is likely.

Near-Term Resistance:  The near-term resistance is around 0.8700. Any violation above will take the pair to 0.8765/0.8800.

Indicator Analysis (4-hour chart)

CCI (50): Bullish

Average Directional Movement Index:  Bullish

Trading Recommendation

It is good to buy on dips around 0.8650 with SL around 0.8600  for a TP of 0.8765.