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The European currency shows multidirectional trading dynamics against the British pound, consolidating near 0.8720 and local highs from October 25. The reason for the emergence of confident upward dynamics was the decision of the Bank of England on monetary policy, as well as related comments of the regulator's representatives.

The day before, the British regulator adjusted the interest rate by 75 basis points, bringing it to 3.0%, which was the most significant increase since 1989. At the same time, officials actually recognize the onset of a recession in the economy, which will last at least until 2024, especially if the Bank of England continues its "hawkish" course. Inflation in 2022 is expected to reach 11.0%.

In addition, domestic political uncertainty remains, as a new wave of criticism from citizens and businesses hit the authorities after the announcement by the new Prime Minister Rishi Sunak of the decision to cut public spending and raise taxes in the country to cover the budget deficit of 57.3 billion dollars.

The focus of investors is on a block of macroeconomic statistics from Europe and the UK in terms of business activity from S&P Global. In addition, the speech of the President of the European Central Bank (ECB) Christine Lagarde is expected during the day, as well as the publication of a report on the US labor market for October.

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is almost unchanged, but it remains rather spacious for the current level of activity in the market. MACD grows, preserving a stable buy signal (located above the signal line). Stochastic keeps its upward direction but is approaching its highs, which reflects the risks of overbought euro in the ultra-short term.

Resistance levels: 0.8740, 0.8777, 0.8817, 0.8864. | Support levels: 0.8692, 0.8645, 0.8606, 0.8569.