The EUR/GBP exchange rate saw a significant rebound on Thursday, moving away from a two-year low. This was in response to comments made by Bank of England Governor Andrew Bailey, who suggested that the central bank may expedite interest rate cuts if inflation continues to show positive trends.

In terms of technical analysis, EUR/GBP has been on a downward trend since early summer but is now showing signs of a potential short-term rebound. There is a bullish "swallow" pattern forming at a key support level around 0.8323. If the previous support level of 0.84 is broken, it could improve the outlook for EUR/GBP. Resistance levels to watch are at 0.8446 and 0.85.

Traders are advised to consider buying above 0.8350, with targets set at 0.8450 and then 0.85. It is recommended to maintain a stop at 0.83, as this offers a favorable risk/reward ratio.