Consolidation is still the name of the game these days, but could EUR/GBP finally break out of its triangle pattern soon?

Or will we see more sideways action from this pair?

Before moving on, ICYMI, yesterday’s watchlist checked out a risk-off play for a break-and-retest setup on AUD/USD. Be sure to check out if it’s still a valid trade!

And now for the headlines that rocked the markets in the last trading sessions:

Fed official Barkin: March 2022 hike is conceivable

Fed’s Clarida to resign earlier than expected amid trading controversy

U.K. BRC retail sales monitor up by 0.6% vs. 0.3% forecast, 1.8% previous

Australian retail sales jumped 7.3% in December 2021 vs. 3.5% consensus

Australia’s trade surplus narrowed from 10.78B AUD to 9.42B AUD

BOJ Quarterly Survey revealed households expect higher prices

China orders suspension of some U.S. flights, Shenzen and Zhengzhou  tighten restrictions

U.S. NFIB Small Business Index at 11:00 am GMT
FOMC members Mester and George to testify starting 2:15 pm GMT
Fed head Powell’s speech at 3:00 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! ? ?️

What to Watch: EUR/GBP

EUR/GBP 1-hour Forex Chart
EUR/GBP 1-hour Forex Chart

It’s all about tight ranges on the forex charts these days, as traders appear to be holding out for bigger news events!

On the hourly chart of EUR/GBP, a descending triangle can be seen as the pair formed lower highs and found support around .8335.

The pair recently got rejected on its attempt to break above the resistance, so it might be setting its sights lower again. Will it bust through the floor this time?

Technical indicators seem to be suggesting so, as the 100 SMA is below the 200 SMA while Stochastic is heading south. These reflect the presence of bearish vibes, which might be enough to set off a drop that’s the same height as the triangle pattern.

The coast is clear in terms of top-tier releases from the U.K. and the eurozone, though, so market sentiment might serve as a catalyst for any major moves.

In that case, better pay attention to Fed head Powell’s testimony later today since tightening comments could bring risk-off flows back to the mix!

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