Bank of England is set to announce a monetary policy decision at 12:00 pm BST today. Market does not expect changes to monetary policy settings. Meeting will be somewhat symbolic as it will be the last one attended by the outgoing Chief Economist Haldane. Haldane is currently the most hawkish BoE member and as a Chief Economist he had a significant impact on BoE policy.
Taking a look at EURGBP at H4 interval, we can see that the pair has been trading in a local downward channel recently. However, the pair is approaching a key support resulting from a potential harmonic pattern XABCD. This pattern often heralds upward move. Should EURGBP pull back from the D point (78.6% retracement), the first target for bulls could be the upper limit of the Overbalance structure (red rectangle). On the other hand, should the pair invalidate the XABCD pattern and drop below the 0.8626 handle, downward move may accelerate with 0.8475 being the first potential target.
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Source: xStation5
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