EUR/GBP has recently rejected off the 0.89 resistance area having downwards sloping trend line which is expected to push the price lower towards the 0.8750 support area in the coming days. The consolidation in the pair was due to mixed economic reports on both currencies of the pair where GBP is currently expected to take the lead and dominate further in the coming days. Today, GBP Official Bank Rate report is going to be published which is expected to remain unchanged at 0.50%, and MPC Official Bank Rate Votes is also expected to be unchanged at 0-0-9. Along with these, today, Bank of England Inflation report and Monetary Policy summary are going to be published which are expected to inject good amount of volatility in the market that may lead to further gains on the GBP side. Additionally, GBP MPC Asset Purchase Facility Votes is expected to be unchanged at 0-0-9, and Asset Purchase Facility is also expected to be unchanged at 435B. On the other hand, today, EUR German Trade Balance is expected to decrease to 21.5B from the previous figure of 22.3B, ECB Economic Bulleting is going to be held today which is expected to have neutral impact on the upcoming gains of EUR, and German Buba President Weidmann is going to speak about the interest rate decision and upcoming monetary policies which is also expected to have a minimal impact on the market. As of the current scenario, the maximum level of concentration today is over to GBP, though having an unchanged forecast for the rates but the upcoming plans of GBP are expected to lead to a definite pressure on the market which may result in a definite trend with the breakout from the current range.

Now let us look at the technical view. The price is currently residing below the 0.89 resistance area after rejecting off the trend line resistance which is expected to proceed lower towards the 0.8750 support area in the coming days. GBP is expected to take the lead in the coming days, and a break below 0.86 will lead to a further impulsive bearish pressure in the market. As the price remains below 0.89, the bearish bias is expected to continue further.