4 Jul 2013
EUR/GBP soars above 0.8600 after BoE
FXstreet.com (Córdoba) - The EUR/GBP rallied to its highest level in near 3 months after the Bank of England left its interest rate and bond purchase program unchanged.
EUR/GBP rose more than 100 pips after the bank's decision as even though it was widely expected, the accompanying dovish statement weighed on the pound. EUR/GBP hit its highest since Apr 17 at 0.8630 before easing a tad and it is currently trading around 0.8595, where it records a 1.0% gain on the day.
On the upside, EUR/GBP could face next resistances at 0.8637 (Apr 17 high) and 0.8655 (61.8% retracement of 0.8815/0.8398), while on the downside supports are now seen at 0.8575 (Jul 3 high) and 0.8500 (psychological level).
EUR/GBP rose more than 100 pips after the bank's decision as even though it was widely expected, the accompanying dovish statement weighed on the pound. EUR/GBP hit its highest since Apr 17 at 0.8630 before easing a tad and it is currently trading around 0.8595, where it records a 1.0% gain on the day.
On the upside, EUR/GBP could face next resistances at 0.8637 (Apr 17 high) and 0.8655 (61.8% retracement of 0.8815/0.8398), while on the downside supports are now seen at 0.8575 (Jul 3 high) and 0.8500 (psychological level).