1 Aug 2013
EUR/GBP dives as BoE holds rates and purchases
FXstreet.com (Barcelona) - EUR/GBP made an overnight high at 0.8769 before declining sharply through a European session which saw European PMIs ahead of todays BoE and ECB events.
Despite posting its weekly high, the pair came under heavy selling pressure during the European session, leading to spot to decline sharply to post a low at 0.8704 where it has found an element of support above the key round number in the build up to today´s BoE meet. This morning saw European PMI´s generally beat expectations, absent France and Spain, while UK PMI surprised expectations sharply, printing at 54.6 against 52.8. The BoE decision to hold rates and purchases has seen spot decline sharply in the immediate aftermath to post a fresh daily low at 0.8691.
Technically, EUR/GBP looks strongly bearish according to the FXstreet.com Trend Index. Classic daily pivot points show support below spot at S2 at 0.8671 and S3 at 0.8642. Above, resistance can be found at S1 at 0.8709, the daily pivot at 0.8738, R1 at 0.8776 and R2 at 0.8805. Hourly oscillators show RSI at 29, in oversold territory, and stochastics oversold at 19.
Despite posting its weekly high, the pair came under heavy selling pressure during the European session, leading to spot to decline sharply to post a low at 0.8704 where it has found an element of support above the key round number in the build up to today´s BoE meet. This morning saw European PMI´s generally beat expectations, absent France and Spain, while UK PMI surprised expectations sharply, printing at 54.6 against 52.8. The BoE decision to hold rates and purchases has seen spot decline sharply in the immediate aftermath to post a fresh daily low at 0.8691.
Technically, EUR/GBP looks strongly bearish according to the FXstreet.com Trend Index. Classic daily pivot points show support below spot at S2 at 0.8671 and S3 at 0.8642. Above, resistance can be found at S1 at 0.8709, the daily pivot at 0.8738, R1 at 0.8776 and R2 at 0.8805. Hourly oscillators show RSI at 29, in oversold territory, and stochastics oversold at 19.