EUR/USD, EUR/GBP and GBP/USD look bid post Fed and ahead of BoE rate decisions

EUR/USD continues its gradual advance as Fed starts new rate hike cycle for first time since 2018

EUR/USD continues its gradual advance towards the January low and last week’s high at $1.1121 to $1.1122 in the wake of yesterday’s widely anticipated US Federal Reserve (Fed), funds rate hike by a quarter point to 0.25% to 0.50%, and it is announcing that it is ready to raise rates six more times this year to contain inflation.

Further up, meanders the 55-day simple moving average (SMA) at $1.1264. Slips should find support around the minor psychological $1.10 mark with further support seen at last Monday’s $1.0901 low.

EUR/GBP consolidates ahead of BoE rate decision

EUR/GBP continues to range trade below this week’s high at £0.8456, whilst remaining above the 55-day SMA at £0.8361 ahead of today’s Bank of England (BoE) rate decision. The market has priced in a third rate hike in a row, taking the base rate to 0.75%.

While the 11 March £0.8361 low underpins, the February peak at £0.8478 remains in focus, together with the 200-day SMA at £0.8479.

GBP/USD remains bid while looking forward to BoE rate decision

GBP/USD has swiftly recovered from its one year 3 months low at $1.3001 and left its one-month downtrend channel amid ongoing peace talks between Russia and Ukraine.

A band or resistance between the late November, December lows and last Thursday’s high at $1.3163 to $1.3194 is being probed ahead of the BoE rate announcement at mid-day. If overcome, minor resistance at the 24 February $1.3273 low should be targeted. In case of a drop being seen, the 8 March low at $130.83 should act as support today.

Only an unexpected fall through this week’s low at $1.3001 would likely lead to the $128.55 to $1.2813 support zone being targeted. It contains the June 2020 high and the November 2020 low.