EUR/GBP in its highs after the BoE

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EUR/GBP in its highs after the BoE

FITITOL--> FXstreet.com (Barcelona) - The overnight rally was capped at 80.87 spike high and the EUR/GBP later dropped down to the 200-hourly moving average at 0.8035 where it was held during the London opening.

Despite the Euro sideways trading in recent hours, the EUR/GBP has rallied back to near the highs on account of the weakening British Pound after BoE’s King Speech and the Financial Stability Report in the UK stating deteriorating data and the need of temporary raise of bank capital levels. At the moment of writing, the pair trades at 0.8070.

While withholding a negative bias, Commerzbank analyst Karen Jones wrote: “The market has immediate resistance at 0.8077 (55 day ma) but will remain offered below the 0.8162 resistance, this is the 38.2% retracement of the move seen this year”.