7 Aug 2013
EUR/GBP dips below 0.8600
FXstreet.com (Córdoba) - Following the knee-jerk reaction to the BoE Inflation report, the GBP strengthened broadly, dragging EUR/GBP briefly below 0.8600.
EUR/GBP hits 2-week low
EUR/GBP initially moved higher and peaked at 0.8730, but quickly reversed course, falling more than 140 pips before finding support. At time of writing, EUR/GBP is trading around 0.8600, where it is 0.8% below its opening price, having bottomed out at 0.8583.
BoE forward guidance
The BoE effectively linked interest rates to unemployment rate, with a threshold of 7.0%, level at which the bank would revise the interest rate level. The dovish forward guidance is contingent on UK CPI inflation remaining restrained.
EUR/GBP technical levels
As for technical levels, EUR/GBP could find immediate supports at 0.8583 (daily low) and 0.8575 (Jul 10 low), while next resistances are seen at 0.8617 (Aug 6 low) and 0.8675 (100- and 200-hour SMA crossover).
EUR/GBP hits 2-week low
EUR/GBP initially moved higher and peaked at 0.8730, but quickly reversed course, falling more than 140 pips before finding support. At time of writing, EUR/GBP is trading around 0.8600, where it is 0.8% below its opening price, having bottomed out at 0.8583.
BoE forward guidance
The BoE effectively linked interest rates to unemployment rate, with a threshold of 7.0%, level at which the bank would revise the interest rate level. The dovish forward guidance is contingent on UK CPI inflation remaining restrained.
EUR/GBP technical levels
As for technical levels, EUR/GBP could find immediate supports at 0.8583 (daily low) and 0.8575 (Jul 10 low), while next resistances are seen at 0.8617 (Aug 6 low) and 0.8675 (100- and 200-hour SMA crossover).