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EUR/GBP re-attempts hourly 100-SMA on BOE

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The bid tone on the GBP took a hit after BOE decision and minutes turned out to be a non-event, thus driving the EUR/GBP cross towards session highs.

    EUR/GBP trades below 5-DMA

    Currently, the EUR/GBP pair rises 0.44% to 0.7370, hovering close to fresh session highs posted at 0.7378 in early European trades. The pound faced renewed selling pressure and edged lower versus the shared currency as markets were left disappointed after the Bank of England (BOE) left its monetary policy setting unchanged with the key rate steady at 0.5%.

    While the MPC vote composition also showed no changes with the vote split at 8-1. Markets were predicted the voting count to show 7-2. As in the previous two meeting, the dissenter Ian McCafferty continued to vote for an immediate 25 bp rate increase.

    The upside in the cross also remains intact as the EUR/USD clinches gains versus the greenback and hovers near 1.13 handle, with the ECB minutes next in focus.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7378 (Hourly 100-DMA), above which it could extend gains to 0.7400 (psychological levels). To the downside immediate support might be located at 0.7348 (20-DMA) below that at 0.7296 (50-DMA).
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