The British pound has recovered some losses after it tested the lower bound of its current downtrend channel. Based on that channel we now see a current resistance at 1.3290 while any bearish moves could be limited until 1.3130. Today will be an interesting trading day for sterling traders as the Bank of England is scheduled to announce its rate decision alongside the release of the MPC meeting minutes.
The BoE is expected to hold its benchmark interest rate steady at today's meeting but the minutes of officials’ deliberations may offer fresh clues to their thinking on Britain’s post-Brexit economy, particularly on whether another rate cut is still in the cards later this year given that growth appears to be holding up better than expected. Yesterday's U.K. labour data showed resilience following the Brexit vote while the U.K. unemployment rate stayed steady at an 11-year low.
The BoE rate decision and MPC meeting minutes are scheduled for release at 11:00 UTC and traders should prepare for volatile swings in the GBP/USD. Before the important event, U.K. Retail Sales are due for release at 8:30 UTC.
Apart from the British pound, the focus will be on the U.S. dollar today with the U.S. Retail Sales report and Philadelphia Fed Survey scheduled for release at 12:30 UTC. Stronger U.S. data will fuel speculations that the Fed could tighten monetary policy at their FOMC meeting next week.
EUR/USD
The euro finally showed some larger swings yesterday, testing its current resistance zone around 1.1270. In the 4-hour chart we see a symmetrical triangle, which may predict increased momentum after the euro broke above or, respectively, below that pattern. Above 1.1275 we see chances of a rise towards 1.1310, the resistance line of the recent downtrend channel. If the euro breaks above that resistance line we watch out for pullbacks around the 1.1330-level as it could act as a crucial resistance. On the bottom side a break below 1.1220 could send the euro lower towards 1.1170 and 1.1130. 
From the Eurozone we have Consumer Prices scheduled for release at 9:00 UTC but no changes are expected. How the euro will trade today will mainly hinge on the performance of the greenback.
Here are our daily signal alerts:
EUR/USD
Long at 1.1275 SL 25 TP 30, 50
Short at 1.1215 SL 25 TP 30-40
GBP/USD
Long at 1.3287 SL 25 TP 20, 50
Short at 1.3235 SL 25 TP 20, 40
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