EUR/GBP drifts back closer to 2-month lows
|The EUR/GBP cross stalled its post-BoE tepid rebound and drifted into negative territory for the sixth consecutive session.
The cross faced rejection around the 0.8900 handle and has now drifted back to near two-month lows touched in the aftermath of hawkish BoE minutes, which showed policymakers' broad consensus that some withdrawal of stimulus would be appropriate in coming months.
• BoE: Type of hiking cycle matters more for GBP - ING
The British Pound built on BoE-led overnight strong gains and has been one of the key factors weighing on the cross through early European session on Friday.
• GBP rally has limited legs amid political uncertainties - ING
Investors would now take clues from a scheduled speech by External BOE MPC Member Gertjan Vlieghe and BOE's Quarterly Bulletin, while the release of Euro-zone trade balance data might also provide some short-term trading impetus.
Technical levels to watch
Immediate support is pegged near 0.8850-45 area, below which the slide could get extended towards the 0.8800 handle with some intermediate support near 0.8825 level.
On the upside, any recovery attempts might continue to confront some fresh supply near the 0.8900 handle, which if cleared might trigger a short-covering bounce towards 0.8935 level en-route 0.8970-75 strong barrier.
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.