- The pound cuts gains against the euro after the Bank of England.
- EUR / GBP has set lows since April, but is back at 0.8500.
The EUR / GBP fell to 0.8494 following the Bank of England decision, reaching the lowest intraday level since April, but then rebounded, cutting the losses of the day, and confirming above 0.8500.
The cross remains close but firm above the important support at 0.8500, which keeps losses limited. A confirmation below would clear the way to test the 2021 floor at 0.8471. To the upside above 0.8545 / 50, a band that includes the 20-day moving average, downward pressures would ease.
The pound, after moderate volatility after the Bank of England’s decision, returned to previous levels. The central bank kept the interest rate and the purchase program as expected. The projections did not generate much surprise, nor was the fact that the only dissenting vote was Saunders against the status quo of the amount of purchases.
In minutes the press conference of the BoE officials who can generate noise in the pound crosses will begin. Before the BoE, data from the Eurozone (higher than expected rise in factory orders from Germany in June) and the United Kingdom (decline in the construction PMI) did not have a significant influence.
Technical levels
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