The pair pared some of its gains after the BOE monetary policy. Intraday bias remains bearish as long as resistance 0.8450 holds. It hit an intraday low of 0.83600 and is currently trading around 0.83677.
On March 20, 2025, the Bank of England (BoE) maintained the base interest rate at 4.5%, signaling a cautious approach amid concerns about a January contraction and inflation exceeding the 2% target. The Monetary Policy Committee (MPC) is focused on balancing economic growth and inflation, with market expectations suggesting potential rate cuts later in 2025 if economic conditions allow. This decision is anticipated to impact housing, consumer spending, and the British pound, as the BoE navigates domestic and global economic uncertainties
Technical Analysis
The pair is currently trading below the 34- and below 55-EMA on the 4-hour chart.
- Bearish Trend Confirmation: Any break below 0.8340 confirms an intraday bearish trend. A drop to 0.8320/0.8290/0.8220/0.8190 is likely.
- Near-Term Resistance: Current resistance is around 0.8450. Any violation above will push towards 0.8470/0.8500/0.8580. 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: Bearish
Trading Recommendation
It is good to buy on dips around 0.8380 with a stop loss around 0.8340 for a target price of 0.8500.
