EUR/GBP sticks to daily gains post-UK data, BoE in focus

Haresh Menghani FXStreet

• 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.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.