EUR/GBP holds steady at 0.8339 as the market digests the BoE's latest rate decision, with technical indicators signaling oversold conditions despite a persistent downtrend below key moving averages.
EUR/GBP sits around 0.8339 after five straight weekly losses, with the RSI near 24 flagging oversold conditions, while the trend indicators (price below the 0.8489-0.8599 SMAs, ADX near 50) keep the bearish tone intact. The BoE's 25bp hike to 4% drew little reaction, and Commerzbank argues the Pound will struggle to rise further until a possible next hike in February. Bullish rebound potential from oversold levels and bearish trend pressure roughly offset, leaving the pair rangebound between 0.8330 support and 0.8350-0.8400 resistance.
Markets had already priced in almost three further rate rises by the middle of next year, so the 25bp hike to 4% and the lack of a timetable from Governor Bailey for follow-up moves offered little new information.
Support sits around 0.8330 and then 0.8300, while resistance starts at 0.8350, followed by 0.8400, 0.8450 and the moving averages between 0.8489 and 0.8599.
The EUR/GBP cross remains rangebound near 0.8339 as bears pause following a five-week losing streak. Despite the Bank of England's 25 basis point rate hike to 4%, the market reaction remained muted due to aggressive pre-meeting pricing and a lack of clear guidance from Governor Andrew Bailey. Technical indicators, including an RSI of 24, suggest the pair is oversold, though the broader trend remains bearish.
Markets had already priced in almost three further rate rises by the middle of next year, so the 25bp hike to 4% and the lack of a timetable from Governor Bailey for follow-up moves offered little new information.
Support sits around 0.8330 and then 0.8300, while resistance starts at 0.8350, followed by 0.8400, 0.8450 and the moving averages between 0.8489 and 0.8599.