EUR/GBP is now down 0.4% to 0.8950
Meanwhile, cable is up 0.5% and extending gains from 1.3550 to 1.3590 levels currently.
The pound is moving higher as Bailey plays down negative rates a little, calling it "controversial" and having "a lot of issues".
This wouldn't be the first that the BOE has done this whole trick as they want to keep market expectations to a minimum in case they have to explore the potential of negative rates some time later in the year.
That said, we are seeing some action in the money market as pricing for a 10 bps rate cut has been pushed back to December now.
Quite frankly, while Bailey's remarks may look like the BOE isn't looking into the issue, I don't see this as a material change in the central bank's stance.
The main thing here is that the BOE doesn't want to be cornered into making a decision, so Bailey's remarks offers them more flexibility in that regard.
That said, one can't simply ignore price action on the charts either.
Looking at EUR/GBP, topside momentum stays limited after the push last week stalled at recent highs close to 0.9085-90 and we are seeing sellers resume control in a push below the 100 and 200-day moving averages now.
Of note, keep below the 200-day moving average (blue line) @ 0.8988 and sellers will retain a more bearish bias in the pair though there is some minor support around the region of 0.8932-53 for the time being.
Looking further out, key support is then seen closer towards 0.8867, which has limited the downside in the pair all the way to June last year.
