What propels EUR/GBP fundamentally is signaled by technicals

In today's BoE's monetary policy meeting, interest rate decision has been unchanged at 0.5%, while closely monitoring the Chinese situation.

The underlying concern in the markets is that the slowdown in China might turn into a hard landing and the evidence either to refute or to confirm that hypothesis will only come slowly so the Bank is likely to remain vigilant on this topic for some more time.

On the flip side, Pushing EUR lower we have:

German trade balance has been deteriorated to 19.6 billion from previous 22.4 bln, while Swiss unemployment rate is increased to 3.4% from previous 3.3%. The prospect of further ECB QE (we look for purchases to be extended at the December 3rd meeting. An interest to rebuild short EUR positions since positioning has turned relatively neutral and any time there is a recovery in risk appetite.

As a result of above fundamental rationale which is mixed bag of movements, EOD technical charts have shown some stagnant movement from last week's lows at 0.7334 levels. Intraday sentiments are also slightly bullish bias but bears do not need to be panic.

On the contrary to the positive side of EURGBP, leading indicators on daily charts fortify some signs of indecision as these upswings were contradicting with divergence. Things seem like taking track back onto its usual business on euro side but poor fundamentals are hindering gains, the euro continue to freezing its long lasting loses gradually against sterling and held sturdy in early Asian sessions. So, as a whole the pair is giving puzzling swings that gives speculating opportunities to swings traders.

Despite the bounces observed in this pair prices still remained well below moving average curve that would not be good signs for current bull run. If someone under the impression of bull sentiments in this pair, an abrupt dips would disrupt backed up by fundamental rationale and this phenomenon has been on from mid march. Hence, there hasn't been clarity over the trend and overall it's been a tight tug of war between bulls and bears in this currency.