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EUR/GBP pushes higher near 0.7130

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 5, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - The sterling keeps depreciating vs. its European peer today, lifting EUR/GBP to test fresh daily highs near 0.7130.

    EUR/GBP up on dovish BoE, Carney

    The European cross has broken its consolidative pattern around the mid-0.70s and regained levels beyond the 0.7100 handle following today’s dovish tone from the BoE meeting, minutes and the Quarterly Inflation Report.

    The dovish tone remains intact as Governor Carney’s press conference is underway. He stressed that core consumer prices has been a tad below expectations, while they could return to levels around the target within two years. In this regard, he added that is preferable to avoid inflation overshoot. He has reiterated that rate hikes will be gradual, while the BoE now expects the first rate hike in early 2017.

    EUR/GBP relevant levels

    As of writing the cross is up 1.02% at 0.7132 with the next resistance at 0.7146 (downtrend from October high) followed by 0.7207 (100-day sma) and then 0.7281 (61.8% Fibo of 0.6934-0.7496). On the flip side, a drop below 0.7024 (low Aug.18) would expose 0.7000 (psychological level) and finally 0.6934 (2015 low Jul.17).
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