Keep in mind this zone in EURGBP before and after Thursday ECB
EURGBP has been ‘sticky’ to this support zone since 4 months, coming to 5. The pair could be supported but could also be pending a breakdown since monthly highs and lows are creeping lower. In the meantime, the pair is stuck in a channel.
With ECB Monetary Policy Meeting this Thursday, it makes sense to keep an eye on price action before and after the meeting. ECB could provide just the right driver to push this pair into a strong move with conviction. Perhaps a breakout below support in a continuation of last September’s bearish expansion.
Should ECB not provide a decisive driver, how the pair closes by the end of January should also provide a clue for February.