- The pound rises in the market, before the Bank of England.
- EUR / GBP fails to hold above 0.8500.
The EUR / GBP is falling on Wednesday, amid a strengthening of the British pound. The cross fell to 0.8477, the lowest level in two days, and remains below 0.8500, with a bearish intraday tone.
The pound is being one of the best performing currencies on Wednesday, and is still one of the few to hold a positive calf counting the dollar. This comes in the run-up to the Bank of England’s decision on Thursday, which could include a hike in the benchmark interest rate. Better than expected data from United Kingdom (Services and Composite PMIs) on Wednesday helped the currency.
In the afternoon of the American session, the decision of the Federal Reserve which can have a broad impact on the market in general and generate movements in the EUR / GBP.
The cross is retracing from three-week highs above 0.8500. Key support zone is seen at 0.8460 / 70, as a fall below could imply the end of the EUR / GBP rally, again enabling the 0.8460 and 0.8420 range. To the upside, 0.8495 has become the first resistance.
Technical levels
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