FXStreet (Córdoba) – EUR/GBP is about to post the highest daily close since October 21 as it continues to trade above 0.7250. A weak pound boosted the pair that broke above 0.7250 and climbed to 0.7279, new monthly high.
The short term outlook continues to favor the euro with price above key moving averages and technical indicators moving to the upside. From a fundamental perspective, the key report over the next days, will be decision and the minutes of the Bank of England on Thursday; no change is expected.
“On balance we do not expect the BoE to announce its first 25 bps rate hike of the cycle before August 2016. Although the Bank may not be in any rush to tighten, its first move is still likely to correspond to very easy policy settings at the ECB. Consequently we continue to expect EUR/GBP to continue to grind lower towards 0.68 on a 12 mth view”, wrote analysts from Rabobank.
EUR/GBP technical levels
To the upside, immediate resistance might be seen at 0.7300/05 (Oct 19 low) and 0.7390 (March and June highs). On the opposite direction, support levels could now be seen at 0.7235 (Sep 8, 9 & 10 low), 0.7200 (100 and 200-day MA / psychological level) and 0.7160 (Dec 7 low).
(Market News Provided by FXstreet)