BOE Holds & Hints at Future Cuts – EURGBP Rockets Higher, Eyes 0.8750+ on 0.8725 Break

EURGBP gained sharply after the dovish rate pause. As long as support 0.8600 holds, intraday bias is bullish. Currently trading at 0.86860, it reached an intraday high of 0.86864.

In a near 5-4 MPC vote as detailed in the February 2026 Monetary Policy Report issued at 12pm GMT, the Bank of England held its key interest rate at 3.75% today, pausing further easing amid persistent inflationary pressures and economic slowing. Though CPI is expected to reach the 2% target by mid-year because of declining oil prices and government policies, projections were lowered with 2026 GDP growth at 0.9% (down from 1.2%) and unemployment reaching 5.3%. Emphasizing data dependency in light of worldwide hazards, Governor Bailey signaled construction evidence for upcoming rate reductions—probably in Q2 like April—reflecting a cautious approach following the cut in December.

Technical Analysis

The pair is currently trading above  55 and 200- EMA and 365-EMA on the 1-hour chart.

Bearish Trend Confirmation: Any break below 0.8660 confirms an intraday bearish trend. A drop to 0.8600/0.8540 is likely.

Near-Term Resistance:  The near -term resistance is around 0.8725. Any violation above will take the pair to 0.8750/ 0.8780/0.8825/0.8865/0.8900/0.8950.

Indicator Analysis (1-hour chart)

CCI (50): Bullish

Average Directional Movement Index:  Bullish

Trading Recommendation

It  is good to buy on dips around 0.8670-6725 with SL around 0.8630 for a TP of 0.8748/0.87780.