EUR/GBP: BoE hawkishness prevents bulls from complete control?

Ross J Burland FXStreet

Currently, EUR/GBP is trading at 0.8784, down 0.00% on the day, having posted a daily high at 0.8793 and low at 0.8764.

On the grander scale of the charts, EUR/GBP is weakening within its consolidation of the daily sticks rally from last summers' rally to 0.9229 from just below 0.76 the figure. More recently, 08879 capped the 0.8310 recovery and price struggles around 0.8800.

BOE’s McCafferty: It would be "prudent" to start raising interest rates

Fundamentally, Sterling finds support on BoE's McCaffertywho sticks to view interest rates should rise now, in line with a notable shift in tone from Central Banks turning more hawkish. However, for today, the US is closed for Independence day holiday's and there is little in the way of price action expected ahead of the rest of the week's PMI data for UK and European nations.

EUR/GBP levels

EUR/GBP’s high of 0.8882 has not been confirmed by the daily RSI and could be a false break higher, according to analysts at Commerzbank. "Risks are growing on the downside. Below the 0.8719 16th June low will trigger losses to the 0.8632/30 200 and 55 day moving averages. We will need to close above 0.8882 to suggest further upside potential to 0.8987/0.9059, the 61.8% retracement and the highs from mid October."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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