EURGBP showed a minor pullback after the BOE monetary policy. Intraday bias remains bearish as long as resistance 0.8380 holds. It hit a low of 0.82236 and is currently trading around 0.82589.
The Bank of England (BoE) has decided to keep its main interest rate the same at 4.75% in its recent meeting on December 19, 2024.
The Bank of England's Monetary Policy Committee (MPC) voted 6-3 to keep the official Bank Rate at 4.75% during its meeting on December 19, 2024. This decision reflects concerns about rising inflation, which increased from 2.3% in October to 2.6% in November. While some members wanted a rate cut to 4.5%, the majority believe it's better to hold steady to manage price stability. The MPC is also watching the effects of recent government actions and global uncertainties on the UK economy. This split in opinions shows differing strategies on how to handle inflation and support economic growth.
Technical Analysis
The pair is currently trading below the 34- and 55-EMA on the 4-hour chart.
- Bearish Trend Confirmation: If the price stays below 0.8220, it will confirm an intraday bearish trend. A drop to 0.8190/ 0.8150 is likely.
- Near-Term Resistance: Current resistance is around 0.8280. If it breaks above, we could see movement toward 0.8300/0.8320/0.8340/0.8360/0.8380/0.845/0.8500. The bearish outlook would be invalidated only if the price goes above 0.8500.
Indicator Analysis (4-hour chart)
- CCI (50): Bearish
- Average Directional Movement Index: Neutral
Trading Recommendation
It may be wise to sell on rallies around 0.8300, with a stop loss set at 0.8340 and a target price of 0.8190.
