Fan Yang
0
All posts from Fan Yang
Fan Yang in Fan Yang,

EUR/GBP Holds Support Despite a "Pre-Hawkish" BoE Statement

Today's Bank of England (BoE) statement sounded rosy towards UK's economy despite global uncertainty. This is less dovish than before, but i would not call it hawkish. It sounds like a transitional tone, with some lean towards an eventual hawkish stance. The pound got a boost against the USD and JPY, but was unable to rally against the euro. 

EUR/GBP 4H Chart 9/10
(click to enlarge)

The 4H EUR/GBP chart shows that price has been consolidating since the end of August, holding mostly below 0.74 and above 0.7240. The pair tested that 0.7240 support this week, ahead of the BoE event risk. Today, it bounced off the consolidation support again, suggesting that the EUR/GBP is at least neutral-bullish in the medium-term, and possibly bullish in the short-term. A break above this week's high around 0.7320 would also clear a falling speedline, and would thus open up the 0.74 high with risk of continuing higher, in-line with its medium-term bullish mode since at least August.