The EUR/GBP It has staged a strong rise of 65 pips after the announcement of a rate hike by the Bank of England, which has increased its rate to 0.75% with eight votes in favor and one against. The crossing has jumped to new 2-day highs at 0.8435and now stands firm trading above 0.8422, gaining 0.35% on the day.
The BoE judges that “some additional modest tightening in the coming months may be appropriate”, a slightly more dovish wording than that of the February statement.
On the other hand, UK inflation is forecast to peak at around 8.0% in the second quarter of 2022, although there are warnings that it could rise later in the year.
EUR/GBP Levels
If it continues to rise, the pair will face the first resistance in 0.8456, March 15 ceiling. Above, the 2022 ceiling is expected, registered on February 7 in 0.8478.
To the downside, the cross needs to return below 0.8400 in order to head to 0.8360, floor of March 11. A break of this level will point towards the region of 0.8200minimum of March 7 and of the last six years.
Source: Fx Street
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