EUR/GBP recovers to 0.7170

FXStreet (Mumbai) - EUR/GBP recovered losses and climbed back higher in the European session, extending its see-saw movement, largely as the pound was hammered by the shared after BOE QIR turned out to be dovish with BOE slashing UK’s GDP forecasts.

EUR/GBP rises from 0.7124

Currently, the EUR/GBP cross trades 0.21% lower at 0.7173, bouncing-off lows at 0.7124. The cross in EUR/GBP wiped out losses and extends gains after the pound was dragged down by a dovish BOE inflation report with growth forecast revised down together with CPI projections while the BOE also remained cautious on UK’s economic outlook.

On the other hand, the EUR/USD pair remains supported at 1.12 barrier and defends mild gains which also added to the upside in EUR/GBP.

EUR/GBP Levels to consider

To the upside, the next resistance is located at 0.7200 and above which it could extend gains to at 0.7226 (May 12 High) levels. To the downside immediate support might be located at 0.7100 levels below that at 0.7030 (March 12 Low) levels.

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