• EUR/GBP rallied more than 100 pips on Thursday after BoE’s dovish hike.
• Longs remain hopeful of cracking 0.8438, the 200-DMA.
• EUR/GBP Price Analysis: in the near term is upward biased; once buyers break resistance at 0.8438, a rally to 0.8500 is in the cards.

The shared currency benefitted from UK’s macroeconomic news, rising almost 100 pips on Thursday after the Bank of England hiked rates but warned that the country might tap into a 15-month recession. Bolstered by the previously mentioned, the EUR/GBP hit a daily high at the confluence of the 20 and 200-day EMAs around 0.8437-41 region. At the time of writing, the EUR/GBP is trading at 0.8426.

EUR/GBP Price Analysis: Technical outlook

The EUR/GBP daily chart depicts that the pair rallied towards the 0.8437-41 area but failed to crack it, meaning that sellers stepped in. As long as EUR/GBP longs keep the spot price above the July 27 high at 0.8426, buyers could remain hopeful of breaching that ceiling level towards the 100-day EMA at 0.8462. Otherwise, the cross would be vulnerable to sellers, which could send the pair towards 0.8400.

EUR/GBP Hourly chart

The EUR/GBP hour chart illustrates that once the pair hit a daily high at 0.8437, they retreated and is consolidating in the 0.8415-37 range. The RSI further confirms the previously mentioned, exiting from overbought conditions but stills in bullish territory, about to cross over the 7-hour RSI’s SMA. Therefore, the EUR/GBP might print a leg-up, but it would need to break above 0.8437.

Once that scenario plays out, the EUR/GBP’s first resistance will be the July 27 high at 0.8491. Break above will expose 0.8500, followed by the July 25 pivot high at 0.8525.

EUR/GBP Key Technical Levels