EUR/GBP rebounds strongly on a contrasting comments from Bundesbank President Joachim Nagel and BoE Governor Andrew Bailey.
In short, Nagel said “further significant interest rate steps” might be necessary for ECB after March, and a “steeper path of reduction” of balance sheet is favored in July.
On the other hand, Bailey said more interest rate hike is not inevitable and “nothing is decided” for March.
EUR/GBP’s strong rebound and break of 0.8834 resistance argues that fall from 0.8977 has completed with three waves down to 0.8753, ahead of 0.8720 structural support. The development in turn suggests that rise from 0.8545 is not over. Near term focus is back on 0.8927 resistance and firm break there will solidify the revived near term bullishness.
