EUR/GBP Outlook: the cross rises through initial barriers after split MPC vote hurt sterling
|EUR/GBP
The cross retested highs of past few days at 0.8646 (reinforced by falling 20DMA) on fresh bullish acceleration on surprise BoE MPC split vote (7-2 vs 9-0 f/c) on previous policy meeting, report showed today. Sterling came under fresh pressure on announcement and fell against its major counterparts, as the first non-unanimous interest rate vote in more than one year signals different views of UK policymakers and signals that more MPC members may join in rate vote for rate cut in 19 Dec BoE's next policy meeting. Fresh advance brings the cross' price in the upper part of 0.8574/0.8675, three-week congestion, which was so far capped by rising 200WMA (0.8658). Rising bullish momentum and north-heading stochastic on daily chart support recovery which needs to break above 200WMA and congestion top to signal base formation and expose next pivotal barriers at 0.8745/69 (Fibo 38.2% of 0.9019/0.8574/falling 10WMA). Caution on conflicting weekly studies (rising bearish momentum/stochastics' bullish divergence) which may limit recovery on lack of clearer signals.
Res: 0.8658; 0.8679; 0.8725; 0.8744
Sup: 0.8628; 0.8602; 0.8585; 0.8574
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.