Following Tuesday’s drop, the EUR/GBP pair finds itself trapped in a symmetrical triangle formation.
A period of congestion between 0.8300-0.8430 was followed by an upside break courtesy of EUR/USD breaking above 1.11 handle. However, Cable’s rally on Tuesday ensured the upside break from congestion failed.
The odds of a bearish break high in case BOE cuts rates or stays pat. Unless the central bank does not come up with something more than a rate cut, Pound is likely to strengthen.