EURGBP Chart Technical Outlook to continue higher on more hawkish ECB
EURGBP’s broad bias is bearish. But the ECB can be more hawkish than BoE. The latter is due today to decide on its benchmark interest rate with an expected 25 bps hike, while markets ask for more than that after yesterday’s hot inflation data. The challenge for the UK is that more hikes might trigger a recession.
I expect a 25 bps hike and a weaker GBP, pushing the pair higher to the next barrier.
Resistances: 0.8635, 0.8690
Supports: 0.8580, 0.8520
