- Euro rocketed higher against the British Pound, and it looks set for more gains more moving ahead.
- There were a couple of bearish trend lines on the 4-hours chart, which were cleared for an upside move.
- Today, the BoE Interest Rate Decision was announced by the Bank of England in which the central bank kept the interest rates unchanged at 0.5%.
- There was no vote by the Bank’s Monetary Policy Committee members to hike rates.
The Euro outpaced the British Pound buyers recently, as the EURGBP pair surged higher. There were a couple of bearish trend lines on the 4-hours chart, which were broken by buyers to take the pair higher. The pair even settled comfortably above the 100 and 200 simple moving average, suggesting bullish signs.
There is a chance that the pair may continue higher and test the 1.618 expansion of the last drop from the 0.7666 high to 0.7527 low where sellers may appear and prevent additional gains.
On the downside, the 100 and 200 simple moving average (H4 chart) may now act as a support area for the EURGBP pair.
BOE Interest Rate Decision
Today the UK saw release of the BoE Interest Rate Decision by the Bank of England, and the minutes of the BoE MPC meetings. There was nothing much in the report, as the central bank kept the interest rates unchanged at 0.5%.
The thing to note was the fact that there was no vote by the Bank’s Monetary Policy Committee members to hike rates, whereas the market was expecting 1 vote.
Overall, it looks like the EURGBP is set for a ride towards the 0.7700 area if buyers remain in control.