EUR/GBP: consolidates heavy supply post steady BoE

EUR/GBP is in consolidation of the recent supply from the 200 sma on the 1hr chart at 0.8474, currently having made lows of 0.8247.

EUR/GBP oscillates at 0.8349 after the pound jumped across the board, reaching as high as 1.3483 vs the dollar when markets were caught out by the BoE leaving rates steady at 0.50% with members voting 8-1. "Little guidance to August's decision was offered, other than saying that most (but notably, not all) members felt that easing would be warranted. The MPC remained vague on its easing options, referring to “policy packages” rather than specific policies," explained analysts at TD Securities. Bets are placed for a cut and QE later in the year.

EUR/GBP levels

"Beyond a small correction the market remains on course for the .8815 February 2013 peak, suggested analysts at Commerzbank. "Please note that we have various Elliott wave counts that suggest that the move will extend towards the .9250 area. Dips lower will find initial support at .8320/.8228, the 38.2% retracement ahead of .8116 the April 2016 high."