8 May 2014
EUR/GBP keeps tops after BoE
FXStreet (Edinburgh) - The EUR/GBP is now side-lining in the upper band of the initraday range around 0.8220 after the BoE left its monetary policy intact in April.
EUR/GBP consolidates above 0.8200
The cross managed to keep the trade above the 0.8200 handle after briefly dipping to the round figure post-Asian session on Thursday, bolstered by the upbeat sentiment around the EUR. In the data front, the BoE left both the refi rate (0.5%) and the Asset Purchase Programme (£375 billion) unchanged in today’s meeting, broadly in line with market expectations. Next on tap and more relevant will be the ECB monetary decision followed by the key press conference by President M.Draghi. “Price is contained between main 0.8160 support area and 0.8410 resistance. Being nearer the support than resistance, the risk at this stage sits with a test of the support, which if broken could open the way to 0.8000. Risk eases if we see price get back above 0.8284 on a weekly close”, observed Paul Robson, Senior FX Strategist at RBS.
EUR/GBP significant levels
The cross is now advancing 0.14% at 0.8216 and a surpass of 0.8226 (high May 6) would open the door to 0.8230 (21-d MA) and finally 0.8241 (30-d MA). On the downside, the initial support aligns at 0.8193 (low May 7) ahead of 0.8191 (low Feb. 28) and then 0.8157 (2014 low Feb.17).
EUR/GBP consolidates above 0.8200
The cross managed to keep the trade above the 0.8200 handle after briefly dipping to the round figure post-Asian session on Thursday, bolstered by the upbeat sentiment around the EUR. In the data front, the BoE left both the refi rate (0.5%) and the Asset Purchase Programme (£375 billion) unchanged in today’s meeting, broadly in line with market expectations. Next on tap and more relevant will be the ECB monetary decision followed by the key press conference by President M.Draghi. “Price is contained between main 0.8160 support area and 0.8410 resistance. Being nearer the support than resistance, the risk at this stage sits with a test of the support, which if broken could open the way to 0.8000. Risk eases if we see price get back above 0.8284 on a weekly close”, observed Paul Robson, Senior FX Strategist at RBS.
EUR/GBP significant levels
The cross is now advancing 0.14% at 0.8216 and a surpass of 0.8226 (high May 6) would open the door to 0.8230 (21-d MA) and finally 0.8241 (30-d MA). On the downside, the initial support aligns at 0.8193 (low May 7) ahead of 0.8191 (low Feb. 28) and then 0.8157 (2014 low Feb.17).