EUR/GBP jumps above 0.8600 after BOE rate decision

EUR/GBP gained nearly 100 pips with the initial reaction to BOE policy decisions.
BOE hiked its policy rate by 25 bps to 1.25% as expected.
Three BOE policymakers voted for a 50 bps hike.

Eren Sengezer FXStreet

EUR/GBP rose sharply and touched a daily high of 0.8630 in the European trading hours on Thursday before retreating slightly. The pair was last seen trading at 0.8620, where it was up 0.55% on a daily basis.

The Bank of England (BOE) announced on Thursday that it hiked its policy rate by 25 basis points to 1.25%. Some experts were expecting the BOE to raise its rate by 50 bps. Three policymakers voted for a 50 bps hike but failed to help the British pound find demand.

In its policy statement, the BOE said that it expects Consumer Price Index (CPI) inflation to be over 9% over the next few months before reaching 11% in October. "BOE will act forcefully in response, if necessary," the publication further read.

Reflecting the negative impact of the BOE's policy announcements on the GBP, the GBP/USD pair is down more than 1% on the day at around 1.2050.

Technical levels to consider

EUR/GBP

Overview
Today last price	0.863
Today Daily Change	0.0053
Today Daily Change %	0.62
Today daily open	0.8577

Trends
Daily SMA20	0.8534
Daily SMA50	0.846
Daily SMA100	0.8415
Daily SMA200	0.8443

Levels
Previous Daily High	0.8721
Previous Daily Low	0.8566
Previous Weekly High	0.8592
Previous Weekly Low	0.8486
Previous Monthly High	0.8619
Previous Monthly Low	0.8367
Daily Fibonacci 38.2%	0.8625
Daily Fibonacci 61.8%	0.8662
Daily Pivot Point S1	0.8521
Daily Pivot Point S2	0.8466
Daily Pivot Point S3	0.8366
Daily Pivot Point R1	0.8677
Daily Pivot Point R2	0.8777
Daily Pivot Point R3	0.8833

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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