The EUR/GBP has staged a 120 pip rally after the Bank of England statement announcing a rate hike of 25 basis points to 1%, its highest level since 2008. The pair has reached a four and a half month top at 0.8545and continues to maintain bullish momentum near 0.8530.
The UK central bank raised interest rates for the fourth time since December and the policy statement suggested some degree of tightening might still be appropriate in the coming months. The BoE statement used the word recessionwhich negatively affected the pound, due to the risks it implies for the British economy.
EUR/GBP Levels
With the cross trading at time of writing above 0.8528, gaining 1.45% daily, the following rresistance awaits at 0.8550ceiling of December 20, 2021, prior to the zone 0.8599/0.8600where is the maximum of December 9, 2021 and the next psychological barrier.
To the downside, a break of 0.8500 can lead to 0.8396yesterday’s post-Fed low. The next major support is at 0.8367floor of May 2 and the last two weeks.
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
