EURGBP Eyes Bullish Surge Post-BOE Rate Pause: Key Levels to Watch

EURGBP gained slightly after the BOE rate pause. Intraday bias  remains bullish as long as support  0.8600 holds. It hits an intraday low of 0.86790 and is currently trading around 0.86820.

Following a unanimous economist consensus and 97% market pricing for, on September 18, 2025, the Bank of England kept its official bank rate at 4.00%. No change after August's 25 basis point cut. Driven by persistent 3.8% inflation in August—matching July's high and fuelled by 5.1% food inflation and 4.8% wage growth—the MPC probably voted 7–2 to hold steady, with dissenting from Swati Dhingra and Alan Taylor for a cut, forecasting inflation to reach Governor Andrew Bailey's "gradual and cautious" guidance means less than 30% probability of a year-end 4% in September, lingers above 2% till spring 2027. Reduction balances growth risks against persistent price pressures; while quantitative tightening may slow to £67.5–70 billion yearly amid market volatility,

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 0.86350 confirms an intraday bearish trend. A drop to 0.8600/0.8560/0.8520/0.8480 is likely.

Near-Term Resistance:  The near-term resistance is around 0.8700. Any violation above will take the pair to 0.8725/0.8750/0.8800/0.8850.

Indicator Analysis (4-hour chart)

CCI (50): Bullish

Average Directional Movement Index:  Neutral

Trading Recommendation

It is good to buy on dips around 0.8660 with SL around 0.8630 for a TP of 0.8760.