The EURGBP is at channel resistance ahead of the Bank of England rate decision.
For the first time in a long time, there are risks to a move in the GBP following the BOE rate decision. We must also note this is the last BOE decision with Mark Carney at the help of the central bank. About 40% of economists are looking for the BOE to cut rates, but what if they do not? If they don’t, the EURGBP is at key resistance and while we trade below the .8500 level the risk is lower. However, if they do cut and have a fairly dovish message for the market the risk of a move back towards the December and January highs at the .8600 level is high given that we would be coming out of a descending channel that has been in place since summer of 2019.