- The pound remains under pressure in the market after a meeting of the Bank of England.
- EUR / GBP heading for sixth consecutive weekly close near 0.8600
EUR / GBP is rising for the second day in a row, and just hit highs since Monday at 0.8594. The main impulse continues to be behind the weakness of the pound, after the meeting of the Bank of England (BoE).
On Thursday the aforementioned central bank maintained the interest rate and the purchase program as expected. Only one member, leaving office, asked for a cut in the total amount. In turn, the “dovish” tone led to a drop in the pound on all fronts.
That weakness continues to drive EUR / GBP, which has erased weekly losses, after recovering after having fallen towards 0.8530.
Testing levels above the mean of 20
The EUR / GBP rally improved the outlook for the euro, which is back above the 20-day moving average. Although on the weekly chart nothing seems to have changed as the price continues to move around 0.8600. This week’s is on the way to being the sixth in a row near that level, marking the state of consolidation of the cross.
In the short term, a rally above 0.8605 would give the euro stronger, which could head for the next resistance at 0.8630. While to the downside, the first support appears at 0.8570 and below 0.8555.
Technical levels
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