EUR/GBP is in a very precarious place now. Since October last year the pair, for the most part, has been confined to a wide range between 0.91390 and 0.83079. The rangebound nature of a cross-currency exchange rate like EUR/GBP is to be expected. But in recent months the pair has drifted lower forming a clean downward channel.
Then on the 3 February, EUR/GBP experienced some aggressive price action. After snapping to a low 0.82852 after the last BoE meeting proved more hawkish than most expected, EUR/GBP quickly shoot back up to a high of 0.84169 on more hawkish comments from the ECB meeting.
