EUR/GBP has been impulsively bearish after bouncing off the resistance level of 0.9267 recently. GBP has been the dominant side of this pair whereas due to mixed economic reports EUR could not refrain from the drastic fall. Today, the Bnak of England released the statement with the policy decision to keep the key interest rate unchanged at 0.25% as widely expected. The Asset Purchase Facility report was also published unchanged as expected at 435B and MPC Official Bank Rate votes were published as expected at 2-0-7 from the previous figure of 2-0-6. Besides, the Monetary Policy Summary was quite hawkish as well that helped the currency to gain more momentum and create pressure over EUR today. On the other hand, today French Final CPI report was published unchanged as expected at 0.5%, which did not quite help the currency to show some strength over GBP today. As a result GBP is expected to dominate further. GBP is currently expected to gain more in the coming days against EUR until the eurozone comes up with better high impact economic reports to push the price higher again.
Now let us look at the technical chart. The price recently reached the support area of 0.8850 – 0.8950. If the price shows a daily close today above the least support of 0.8850, we can expected a further bullish move in the coming days with a target towards 0.9267 again. On the other hand, if the price breaks below 0.8850 with a daily close in the coming days, then we will consider sell positions with a target towards the 0.8530 support level. As the price remains above the support area, the bullish bias is expected to continue further.
