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EUR/GBP challenging lows near 0.7540, BoE eyed

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - After climbing as high as the 0.7570 area, EUR/GBP has now deflated to the 0.7540 region, testing daily lows at the same time.

    EUR/GBP attention to BoE

    The European cross has been managing well to keep the trade in levels last seen in February 2015 in the mid-0.7500s, against the backdrop of a now better tone around the sterling ahead of BoE’s ‘Super-Thursday’ due later.

    In fact, the Boe will hold its MPC meeting today followed by its minutes. Market consensus sees both the refi rate and the asset purchase facility unchanged at 0.5% and £375 billion, respectively. However, BoE minutes seem more appealing, in light of the recent collapse of GBP, disappointing results in the UK indicators as of late and lack of reaction in wage growth.

    EUR/GBP levels to consider

    As of writing the cross is down 0.02% at 0.7538 with the next support at 0.7403 (20-day sma) followed by 0.7389 (1-month uptrend) and then 0.7310 (low Jan.5). On the other hand, a surpass of 0.7595 (high Feb.3 2015) would expose 0.7715 (high Jan.21 2015) and then 0.7875 (2015 high Jan.6).
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