EUR/GBP ahead BoE's interest rate decision post-Brexit
Today will be a decisive day for current interest rates from the Bank of England, as Mark Carney hinted a few weeks ago about a possible rate cut scenario. This event is important by itself as its the first interest decision to be made by UK central bank after Brexit's referendum. Analysts expect a possible cut from 0.50% to 0.25%. By the way, during yesterday's session, Theresa May formally was named as new UK Prime Minister, after David Cameron's resignation.
The technical scenario for EUR/GBP at H1 chart, ahead the BoE's interest rate decision, is showing two interesting paths: one is calling for a continuation towards the 0.8503 level, which is above the 200 SMA and that can happen if BoE's officials decide to cut rates. The reaction may be strongly higher if the summary from monetary policy is dovish. The other path is giving a chance for a strengthening of GBP against EUR, so the pair can pullback at current stage to test the support zone of 0.8302 (near to yesterday's lows).