EUR/GBP bulls attempting a comeback, Brexit u-turn and less dovish BoE

Ross J Burland FXStreet

Currently, EUR/GBP is trading at 0.8902, up 0.02% on the day, having posted a daily high at 0.8941 and low at 0.8873.

BoE: We no longer expect a rate cut next year - Danske Bank

EUR/GBP bulls lost some love last week on the back of a less dovish BoE, surprises in the UK economy post referendum vote, a u-turn in respect of Article 50 and fundamental demand for Sterling at attractive prices.

Brexit all up in the air again; there will be an appeal - BBH

Then, in stark contrast to that of the eurozone, the ECB are expected to stick to QE with a bias to lower rates, a pending catastrophe in the banking sector and a fall out from the potential of other EU nations holding their own referendums, the euro is starting to feel the heat while markets get prepared for a Clinton victory that could add further supply to EUR/USD and pressure the cross.

GBP: BoE shift was significant - MUFG

EUR/GBP levels

Spot is presently trading at 0.8902, and next resistance can be seen at 0.8904 (Hourly 20 EMA), 0.8919 (Yesterday's High), 0.8922 (Daily 20 SMA), 0.8927 (Daily Classic R1) and 0.8936 (Weekly Classic PP). Next support to the downside can be found at 0.8900 (Weekly Low), 0.8892 (Monthly Low), 0.8892 (Daily Classic PP), 0.8878 (Daily Open) and 0.8873 (Daily Low).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.9000

67% Bullish
33% Bearish
0% Sideways

Bias Bullish

1 Month

Avg Forecast 0.8729

44% Bullish
44% Bearish
11% Sideways

Bias Neutral

1 Quarter

Avg Forecast 0.8700

22% Bullish
56% Bearish
22% Sideways

Bias Bearish

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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