EUR/GBP sticks to daily gains post-UK data, BoE in focus
| • Stages a goodish rebound from near 2-week lows touched yesterday.
• Mixed UK economic releases did little to influence the price action.
• All eyes remain glued to the latest BoE monetary policy update.
The EUR/GBP cross held on to its daily gains, around the 0.8765-70 region, but had a rather muted reaction to UK economic data.
The cross snapped three consecutive days of losing streak and built on previous session's rebound from near 2-week lows amid easing bearish pressure around the EUR/USD major.
The British Pound's relative underperformance against its European counterpart could further be attributed to the latest mixed UK macro releases, showing manufacturing output fell by -0.1% and industrial production rose 0.1% in March.
Meanwhile, the UK trade balance data came-in to show a larger-than-expected deficit of £12.3 billion and did little to prompt any fresh GBP weakness. Moreover, investors continue to hold back from placing any aggressive bets ahead of the latest BoE monetary policy update, which might now contribute towards capping any further up-move.
Technical levels to watch
The 0.8770-75 region might continue to act as an immediate resistance, above which the up-move could further get extended towards the 0.8800 handle en-route 0.8840 heavy supply zone.
On the flip side, immediate support is pegged near mid-0.8700s, which if broken might turn the cross vulnerable to extend its recent slide and head towards testing sub-0.8700 level.
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