The BOE raised rates by 25 basis points with dissenters in the 5-4 vote leaning to 50 bp rise. That initially sent the EURGBP to the downside.
However, after Lagarde started to switch course for the ECB, it was “fast break the other way” for the EURGBP with the price racing toward the high from last week.
The high has extended to 0.8416. The high last week reached 0.8422.
The highs today have now entered into a topside swing area between 0.84148 and 0.8424 (see red numbered circles). Along the way, the pair cracked above the 100/200 hour MAs and swing areas around 0.8370 and 0.8403.
Earlier today, after the BOE announcement, the pair broke to the downside and through a key swing area between 0.8305 to 0.8312. The low reached 0.82827 and failed.
So in the course of the day (and really over the last 8 or so hours, the price has traded the range since December 28th – with a failed break lower added on at the lows.
The question now is “Can the upper extreme be broken and stay broken?”
If low the 50% midpoint at 0.8440 followed by the falling 100 day MA at 0.84567 are the next key targets to get to and through.
Break through the 100 day MA and there should be more follow through buying in the pair with the 200 day MA up at 0.85129 as another key target to the upside.