EUR/GBP hits two-week lows and quickly recovers to fresh session tops
|As the ECB presser got underway, the EUR/GBP cross refreshed two-week lows but quickly rebounded back to hits fresh session high level near the 0.9175-80 region.
The cross initially retreated from highs post the ECB monetary policy decision announcement, where the central bank maintained status quo and left interest rates and QE unchanged.
The shared currency lost further ground after the ECB President Mario Draghi, during his opening remarks at the post-meeting press conference, reaffirmed that QE will run until December 2017 or beyond, if needed, and that interest rates would remain at present level well past the end of QE.
The downslide, however, seemed limited on Draghi’s comments that though underlying inflation remains subdued, it would eventually towards the target.
This coupled with an upgrade of 2017 economic growth forecast to 2.2% (fastest since 2007) provided an additional boost to the shared currency, with the cross quickly rebounded around 40-pips from session lows.
Technical levels to watch
A follow through retracement below 0.9125 level is likely to accelerate the slide towards the 0.9100 handle before the cross eventually drops to its next support near the 0.9065-60 region.
On the upside, 0.9170 level remains immediate hurdle, which if conquered might now lift the cross beyond the 0.9200 handle back towards recent daily closing highs resistance near the 0.9265-70 region.
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