GBP/USD, EUR/GBP and EUR/USD amid BoE rate decision
Outlook on GBP/USD, EUR/GBP and GBP/USD around the BoE’s rate decision.
GBP/USD flirts with May low ahead of BoE rate decision
GBP/USD slid all the way to its May low ahead of today’s Bank of England (BoE) monetary policy decision where a fifteenth consecutive rate hike to 5.50% was expected before UK inflation for August came in lower-than-expected at 6.70% (6.20% for core inflation) and questioned this view.
A fall through today’s intraday low at $1.2305 could lead to the mid-February high at $1.2270 being revisited, together with the late January low at $1.2263.
Minor resistance is seen at the 10 April low at $1.2345 and Monday’s $1.2371 low ahead of the 200-day simple moving average (SMA) at $1.2435. While remaining below it, the bearish trend stays firmly entrenched.
EUR/GBP traders await BoE rate announcement
EUR/GBP is heading towards the higher boundary of its June-to-September sideways trading range, having yesterday been capped by its £0.8658 late June high ahead of today’s UK central bank rate decision.
A rise above that high and the next higher £0.8669 August peak would put the July high at £0.8701 on the cards, ahead of the 200-day SMA at £0.8712.
Minor support below last week’s £0.8630 high can be spotted around the £0.8610 late August high.
EUR/USD trades in 3 ½ month lows post ECB rate hike
Earlier this morning EUR/USD briefly dropped below its $1.0636 May low to $1.0617 as multi-year high US yields lead to US dollar inflows.
A slide through and daily chart close below today’s intraday low at $1.0617 could provoke a tumble towards the January and March lows at $1.0516 to $1.0484.
As long as the currency pair remains below its last reaction high at $1.0736, seen on Wednesday, the July-to-September downtrend remains intact.
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