BoE decision takes centre stage as Euro seeks direction against British Pound

0.8350 approaches as EUR/GBP inches higher, still within the previous day's range.
Ahead of the BoE's monetary policy announcement, investors remain reluctant to sell the Pound despite support for the Euro from cheaper Oil.
A small triangle is taking shape in recent trading, according to the technical outlook.

EUR/GBP is trading at 0.8344. The Euro (EUR) has edged higher against the British Pound (GBP) on Thursday, though it is still confined to recent days’ ranges. Investors are holding off on investment decisions until the Bank of England’s (BoE) monetary policy meeting concludes later on Thursday. Recent trading has traced a small triangle pattern.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

Expectations of a 25 basis point increase in the BoE's Bank Rate to 4% following Thursday’s meeting have supported the Pound against its major counterparts in recent weeks. That outcome is widely anticipated. However, the bank could temper expectations for further monetary tightening, disappointing markets and potentially triggering a sharp fall in the Pound.

A steep fall in Oil prices is lending the Euro support, but Thursday’s weaker-than-expected German Factory Orders have limited the common currency’s rebound.

Technical Analysis: 0.8350 caps EUR/GBP's small triangle

At 0.8345, EUR/GBP is consolidating after a decline of more than 3% over the previous five weeks. Trading is narrowing towards the apex of a symmetrical triangle. Momentum signals are balanced: the four-hour Relative Strength Index (14) sits just below 50, while the Moving Average Convergence Divergence (MACD) is slightly positive. Together, they point to limited bullish pressure.

Confirmation of a bullish correction requires a break above the triangle’s upper boundary around 0.8350, followed by resistance at 0.8363 (the 2 November high) and 0.8380 (the 28 October high). The lower triangle boundary offers support around 0.8335, although the key level is the 30 October low near 0.8320. A bearish move below that level would shift attention to the late March 2025 lows at 0.8315, followed by the February 2025 low near 0.8250.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Euro Performance Today

Against the US Dollar, the Euro (EUR) recorded its strongest performance today. The table below sets out its percentage moves against the major currencies listed.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.11%	-0.01%	-0.13%	-0.05%	-0.06%	-0.23%	-0.03%
EUR	0.11%		0.09%	-0.05%	0.05%	0.04%	-0.13%	0.06%
GBP	0.01%	-0.09%		-0.15%	-0.04%	-0.06%	-0.21%	-0.03%
JPY	0.13%	0.05%	0.15%		0.08%	0.08%	-0.11%	0.09%
CAD	0.05%	-0.05%	0.04%	-0.08%		-0.00%	-0.18%	0.00%
AUD	0.06%	-0.04%	0.06%	-0.08%	0.00%		-0.15%	0.01%
NZD	0.23%	0.13%	0.21%	0.11%	0.18%	0.15%		0.21%
CHF	0.03%	-0.06%	0.03%	-0.09%	-0.01%	-0.01%	-0.21%

Percentage movements between the major currencies are displayed in the heat map. Select the base currency in the left-hand column and the quote currency in the top row. Selecting the Euro on the left and reading across to the US Dollar, for instance, gives the percentage change for EUR (base)/USD (quote) in the intersecting cell.