FxWirePro: EUR/GBP Holds Above Strong Trendline Support, Focus on Boe Policy Meet
- EUR/GBP edges higher from fresh 2-week lows at 0.7925, and is on track to post the first weekly loss after five consecutive advances.
- Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-struggles-at-the-080-handle-focus-on-UK-inflation-data-193044) has hit targets 1 and 2.
- The pair is holding above strong trendline support at 0.7920, momentum has turned bullish, downside limited in the near-term.
- Immediate resistance is seen at 0.7984 (Apr 13th highs) ahead of 0.7988 (5-DMA). On the downside support is seen at 0.7925 (Apr 13th low) and then 0.7920 (rising trendline).
- Eurozone inflation and BoE policy meet are likely risk events for the pair. We recommend booking full profits and exit trade.
- Expectations are for the central bank to keep interest rates on hold for the 85th month in a row. BoE is likely to maintain the Bank Rate and stock of purchased assets unchanged at 0.50% and GBP375bn, respectively.
- Decision to be unanimous, anything other than a 9-0 vote for unchanged interest rates … will be a major surprise.
The material has been provided by InstaForex Company - www.instaforex.com