- The pound falls against its main rivals on Wednesday.
- EUR / GBP resumes bullish rallies and reaches highs in two weeks.
The EUR / GBP rose above 0.8600 and climbed to 0.8612, matching September’s high.. The euro could not overcome that barrier and fell towards 0.8600; maintains the bullish tone.
A daily close clearly above 0.8600 would enable a bullish extension of the EUR / GBP heading into the next few days. The next strong resistance can be found around 0.8640. On the contrary, if it cannot, the pound could strengthen. A return below 0.8555 would put the cross back in the range between 0.8500 and 0.8550, removing the short-term bullish bias.
Fed, BoE and PMI
At 18:00 GMT the Federal Reserve statement will be released. While this should mainly affect the dollar, it is expected to have a wide impact on the market, influencing even crosses such as EUR / GBP. Volatility is expected to persist for the duration of Jerome Powell’s press conference, which begins at 18:30 GMT.
On Thursday the decision of the Bank of England (BoE). No changes are expected from the BoE in monetary policy. The focus will be on the vote and possible signs for the future.
Regarding data, the preliminary reading of the September PMI for Europe will be released on Thursday, this being a key piece of information to see the evolution of the economy.
Technical levels
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