EUR/GBP – Quietly Waiting on the BOE Decision

EUR/GBP (0.7606)

Points to consider in this Forex market:

• This Forex market is trading quietly above the 0.75 pivot.
• Waiting on the Bank of England (BoE) policy decision to offer direction.
• Trade strategy

The EUR/GBP Forex market is trading quietly above the 0.72 pivot at this time. This Forex market remains within a bearish descending triangle pattern which means the bearish sentiment remains intact. Right now, we are waiting on confirmation of the bearish scenario. This requires a break of the triangle support. Please refer to the below EUR/GBP daily MT 4 chart for today’s daily technical analysis.

Technical Analysis

First up is today’s EUR/GBP daily technical analysis. The first layer of technical support is the January 22 low lining up at 0.7525. A daily close below this barrier challenges the next downside barrier lining up at 0.7460. The alternative EUR/GBP technical analysis, should he euro show strength, notes the triangle top as the first upside barrier. This technical resistance level is lining up at 0.7707. A break above this barrier challenges the next technical resistance level that lines up at 0.7820.

Trade Strategy

Now, let’s discuss today’s EUR/GBP trade strategy. Any actionable trade setup is not available right now. There is no long or short euro trade from a technical analysis standpoint. Also, the overall trend remains bearish favoring a short euro when it comes available. There is also macro events to consider. Specifically the looming BoE policy decision which could unravel the Sterling’s position as well as cause quite a bit of short-term volatility. For now, I will opt to stand aside in this market. For today, I am flat in the EUR/GBP Forex market.