- The EUR/GBP is getting yanked back towards 0.8700 as Thursday’s gains get rebuffed.
- The Euro clipped into a high of 0.8736 before getting knocked back down.
- BoE left rates unchanged, but hawkish lean sends the Pound Sterling back up.
The EUR/GBP is falling back towards the 0.8700 handle after scrambling up the charts in the runup to Thursday’s Bank of England (BoE) rate call, which saw rates on hold, but hawkishly so. The Pound Sterling (GBP) saw a late break and recovery following the UK central bank, cutting away some of the day’s gains for the Euro (EUR).
BoE Governor Andrew Bailey gave some talking points while delivering the BoE’s rate hold announcement, noting that the UK still has a long way to go on quashing inflation, and the need for balance in monetary policy restrictiveness.
The BoE’s rate call showing wraps up impactful scheduled data from both the EU and the UK for the week.
EUR/GBP Technical Outlook
The EUR/GBP’s late break lower has sent the pair back into the 200-hour Simple Moving Average (SMA) as prices return to the near-term median, slipping back from the day’s high of 0.8736.
Despite the GBP’s late rebound, the pair remains fairly well-bid for the day, up 0.3% from Thursday’s opening bids near 0.8690.
Daily candlesticks continue to clatter along the 0.8700 key handle, with the 200-day SMA near the level keeping prices strung along the midrange.
The pair is sticking close to the top side of six-year highs after lifting from the year’s low bids near 0.8500 from back in August, and a bullish continuation will see the pair set for a long-term run towards 2023’s early highs near 0.8860
EUR/GBP Daily Chart
EUR/GBP Technical Levels