EUR/GBP very much on the radar this week

Since basing out at 0.8383 on July 17, the EUR/GBP shot higher, rising to 0.8625 on August 8. The driver behind that move was due to the BOE reducing interest rates on August 1. The relapse that has followed has seen it give back pretty much all of those gains (helped by the ECB matching the BOE cut last week) and in the process form something of a head and shoulders type formation on the daily charts. It is certainly not perfect or symmetrical though. The low since the high was set at 0.8400 on August 30. A modest rebound off that low took the Euro up to 0.8463 last week. Since then and so far today, the Euro is falling back and today it has reached a low so far, at 0.8425. The prospect of the BOE remaining on hold later this week is adding to the downside traction right now and if it turns out that way, then it could be that 0.8400 comes under threat again. Perhaps that level will be put to the test beforehand anyway? We shall see, but the point here; is that right now any move below 0.8383 from here on risks an unravelling of that 242 pip gain. For that reason the EUR/GBP is very much on the radar later this week, before and after the BOE policy decision on Thursday. It is currently trading at 0.8429