EUR/GBP Price Analysis: Bearsih H&S pattern in the making leading into BoE/ECB key events

• EUR/GBP bears are waiting in the flanks of the central bank meetings. 
• Bulls are tiring on the bid which opens prospects of a downside continuation. 

EUR/GBP is under the spotlight this week considering the central bank meetings on Thursday. ''The money market has priced in another 125 bps on UK rates on a 12-month view. This compares with around 35 bps on Eurozone rates in the same period,'' analysts at Rabobank explained. 

''The guidance provided by the ECB and the BoE tomorrow will provide an opportunity for investors to re-evaluate these policy expectations and this suggests the potential for fresh direction for EUR/GBP.''

As for the technical outlook for the meetings, the following illustrates a bearish bias from an hourly perspective:

EUR/GBP H1 charts

The price is losing traction on the bid as it moves in on the 50% mean reversion point of the prior bearish impulse. If the bears commit here, then there will be prospects of a bearish head & shoulders forming in subsequent sessions and price action as follows: