The solid performance of the sterling has dragged EUR/GBP to test session lows in the 0.7825/20 band.
EUR/GBP firmer post-BoE
GBP continues to outperform its risk-associated peers following the BoE meeting, prompting the European cross to give away around a cent since daily highs above the 0.7900 mark.
Expectations of a dovish BoE did not materialize today, adding to the current GBP-buying and thus sending the cross back to the low-0.7800s, all against the backdrop of a generalized risk-on sentiment following the FOMC meeting on Wednesday.
EUR/GBP key levels
The European cross is now losing 0.51% at 0.7829 and a break below 0.7801 (20-day sma) would aim for 0.7693 (38.2% Fibo of 0.7310-0.7931) and then 0.7683 (55-day sma). On the other hand, the immediate hurdle lines up at 0.7914 (high Mar.17) ahead of 0.7931 (2016 high Feb.25) and then 0.8000 (psychological handle).
(Market News Provided by FXstreet)