EUR/GBP finds resistance at 0.7700

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The euro is rising for the second day in a row against the pound as it continues to raise from 0.7530. The rally of the EUR/GBP pair found resistance earlier today at 0.7700.

    It reached the strongest level in two weeks at 0.7701 and then pulled back but it remained in positive territory.

    EUR/GBP boosted by EUR and BoE

    The euro continues to be among the top performers of the week giving support to the pair. During the European session EUR/GBP receive a boost from the Bank of England (BoE).

    The central bank left interest rate unchanged as expected, but the vote was unanimous. It represent a dovish shift in the voting considering that at the previous meeting the result was 8 to 1, with one member of the Monetary Policy Committee asking for a rate hike.

    The pound weakened after the BoE decision and the minutes and is was also affected by the Quarterly Inflation report, that lowered inflation and growth prospects.

    The pair rallied but failed to break above the 0.7700 area that has become a key short-term resistance. Momentum continues to favor the upside.

    During the last hours EUR/GBP has remain steady, consolidating gains and moving in a range between 0.7650 and 0.7685. If it ends the week around current levels it would post the highest weekly close since December 2014.
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