EURGBP is forming higher lows and higher highs to consolidate inside a rising wedge pattern on its 1-hour time frame. A big breakout could be looming as traders are eagerly waiting for the ECB decision.

The European Central Bank is widely expected to announce when their quantitative easing program might end. Although this has been hinted at in the past months, official confirmation from policymakers and ECB Governor Draghi could be more conclusive for the shared currency.

In fact, the euro has already been climbing so far this week as traders are also hoping to get more clues on when the rate hikes might start. Of course Draghi is also known for his cautious commentary so declining to comment on tightening moves could still dampen euro gains.

In any case, price is approaching the peak of the wedge, which means that a breakout is looming. The 100 SMA is above the longer-term 200 SMA on this time frame to signal that the path of least resistance is to the upside. This means that an upside break is more likely to happen than a break lower.

If so, EUR/GBP could climb by the same height as the chart formation, which spans .8700 to .8840. The moving averages are also in line with the wedge bottom to add to its strength as support in the event of another dip.

However, RSI is on the move down to signal that sellers have the upper hand. Similarly stochastic is turning lower to show that sellers are taking control while buyers take a break.

Keep in mind, however, that the pound has more troubles to contend with since more Brexit-related debates are due among lawmakers. Although a “meaningful vote” was made this week, the bill is still up for discussion in the House of Lords and further conflict could keep uncertainty in play for the British economy.