EUR/GBP extends decline after BoE decision

EUR/GBP fell further and made fresh 4-week lows as the pound received another boost from BoE policy decision.

The BoE voted unanimously to leave rates and asset purchases unchanged, and said they are ready to respond in either direction. This was read as the BoE backing away from an earlier signal that it was likely to cut its key interest rate for a second time after the Brexit vote.

EUR/GBP dropped further to a low of 0.8858 and it was last trading at 0.8865, down 1.69% on the day. The pound was already on demand after the High Court said that UK government must get the Parliament’s approval to trigger Article 50.

EURGBP levels to watch

In terms of technical levels, next supports are seen at 0.8804 (Oct 7 low), 0.8775 (Oct 5 low) and 0.8724 (50-day SMA). On the other hand, resistances could be found at 0.8947 (10-day SMA), 0.9023 (Nov 3 high) and 0.9048 (Nov 2 high).