FxWirePro: EUR/GBP sidelined ahead of the BoE and ECB policy decisions

Chart - Courtesy Trading View 

EUR/GBP extends sideways grind, trapped between 21-EMA and 200-DMA. Traders prefer to wait on the sidelines ahead of BoE and ECB policy rate decisions.

The Bank of England (BoE) will announce its policy decision at 12:00 GMT later in the day and is widely expected to slow the pace of its policy tightening.

The BoE is likely to deliver a relatively smaller, 50 bps rate hike, amid signs of peaking inflation in the UK.

On the other side, the European Central Bank (ECB) is set to raise interest rates for the fourth time in a row, but at a slower pace than at the last two meetings. Market are pricing in a 50 bps hike amid signs of easing inflationary pressures.

ECB President Christine Lagarde's remarks at the post-meeting press conference will be closely watched for further direction. 

Major Support Levels: 

S1: 0.8674 (Lower BB)

S2: 0.8548 (200-DMA)

Major Resistance Levels: 

R1: 0.8622 (21-EMA)

R2: 0.8648 (55-EMA)

Summary: EUR/GBP capped between major moving averages - 21-EMA and 200-EMA. The pair is likely to grind sideways till it finds a major catalyst. Decisive breakout will provide a clear directional bias.