• Uninspiring BoE decision helps recover early lost ground.
• As was widely expected, ECB leaves interest rates unchanged.
• New ECB economic projections/Draghi awaited for fresh impetus.
The EUR/GBP cross reversed an early dip to sub-0.8900 level and has now recovered around 30-pips from session lows.
The latest BoE monetary policy statement failed to impress the GBP bulls and was seen as one of the key factors behind the pair's goodish rebound from an intraday low level of 0.8892. The cross held on to modest gains for the third consecutive session, around the 0.8910-15 region and moved little after the ECB, as was widely expected, left key rates unchanged.
The European Central Bank reiterated that interest rates will remain at present levels at least through the summer of 2019 and in any case for as long as necessary to ensure continued sustained convergence of inflation to levels that are sustainable.
The key focus would remain on the new economic projections, which coupled with the ECB President Mario Draghi's comments at the post-meeting press conference might provide the required momentum and assist the cross to finally break out of its three-day-0ld trading range.
Technical levels to watch
Immediate resistance is pegged near the 0.8935-40 region, above which the cross is likely to aim towards reclaiming the key 0.90 psychological mark. On the flip side, the 0.8875 region might continue to protect the immediate downside, which if broken might turn the cross vulnerable to extend its near-term downward trajectory.
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