EUR/GBP drops further to 0.7240 on BOE

FXStreet (Mumbai) – The cross in the EUR/GBP extends losses and fell to fresh session lows in the European afternoon, as the pound picked-up strength following the release of BOE rate decision accompanied by its minutes.

EUR/GBP rises from 0.7260 post UK data

Currently, the EUR/GBP pair drops -0.62% at fresh session lows at 0.7249, slipping from 0.7270 levels pre-BOE. The pound continues to hammer the European currency despite the BOE minutes read as outrightly dovish as widely anticipated.

The British currency also ignored BOE’s downward revision of its estimate for Q3 2015 GDP outlook, drowning EUR/GBP into steep losses.

The Bank of England (BOE) made no changes to monetary policy at its September meeting, therefore the main rate stayed at 0.5% and the QE amount remained at £375 billion.

The minutes from this meeting revealed that still only one MPC member voted in favor of a rate hike and the remaining eight members wanted rates to stay at the current levels.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7324 (Aug 31 High) levels and above which it could extend gains 0.7400 levels. To the downside immediate support might be located at 0.7200 below that at 0.7148 (Aug 21 Low).

The cross in the EUR/GBP extends losses and fell to fresh session lows in the European afternoon, as the pound picked-up strength following the release of BOE rate decision accompanied by its minutes.

(Market News Provided by FXstreet)