EUR/GBP begins correction after BOE minutes release

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The Bank of England (BOE) minutes released just now called for a gradual rate rise and triggered 25-pip correction in the EUR/GBP pair from the one-year high of 0.7500 levels.

    Sterling depreciation cheered, EUR/GBP correction stalled

    The minutes showed the policymakers feel depreciation of sterling if sustained would lessen drag on CPI to some degree. Hence, the correction in the EUR/GBP cross appears to have stalled around 0.7475 levels.

    Ahead in the day, the pair could continue its correction if the US stock ignored the risk aversion in Europe and turn higher.

    EUR/GBP Technical Levels

    The immediate resistance is seen at 0.7624 (Jan 15, 2015 low), above which the cross could target 0.7693 (Jan 20, 2015 high). On the other hand, failure to sustain above 0.7555 (Jan 11 high) would open doors for technical correction to 0.7500 handle.
    For more information, read our latest forex news.

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