22 Jul 2015
EUR/GBP challenges 0.7000 on BOE Miles
FXStreet (Mumbai) - The EUR/GBP cross edged lower in the European morning, snapping two straight sessions of gains, largely on the back of broad sterling strength as traders react to the recent comments from BOE Miles while anticipating a slightly hawkish BOE minutes due to be published later this session.
EUR/GBP rejected at 0.7037
Currently, the EUR/GBP pair -0.26% lower at fresh session lows at 0.7007. The cross in EUR/GBP witnessed steep losses heading in to European opening bells mainly driven by strengthening GBP/USD after BOE MPC member Miles noted in an interview this morning that he expects inflation to converge towards the 2% target by year end.
BOE Miles comments just come ahead of BOE minutes due later today with markets anticipating slightly hawkish tone especially after last week BOE Governor Carney’s speech.
While the European currency remains supported versus the greenback limiting the downside in the cross and keeping it buoyed above 0.70 handle.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7037 (Today’s High) levels and above which it could extend gains 0.7070 (July 15 High) levels. To the downside immediate support might be located at 0.6958 (July 16 Low) below that at 0.6900 (2007 levels).
EUR/GBP rejected at 0.7037
Currently, the EUR/GBP pair -0.26% lower at fresh session lows at 0.7007. The cross in EUR/GBP witnessed steep losses heading in to European opening bells mainly driven by strengthening GBP/USD after BOE MPC member Miles noted in an interview this morning that he expects inflation to converge towards the 2% target by year end.
BOE Miles comments just come ahead of BOE minutes due later today with markets anticipating slightly hawkish tone especially after last week BOE Governor Carney’s speech.
While the European currency remains supported versus the greenback limiting the downside in the cross and keeping it buoyed above 0.70 handle.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7037 (Today’s High) levels and above which it could extend gains 0.7070 (July 15 High) levels. To the downside immediate support might be located at 0.6958 (July 16 Low) below that at 0.6900 (2007 levels).