- Bank of England statement and the High Court ruling on Brexit positive for GBP.
- BoE left policy unchanged and said it now expects higher short-term real GDP growth and CPI inflation to be higher than the August projections.
- Also, UK high court ruling which has made parliamentary vote on Brexit mandatory may soften the “hard Brexit” tactics of the government."
- EUR/GBP hit fresh 4-week lows of 0.8859 on Thursday, before edging higher to close at 0.8907.
- Intraday bias for the pair is lower, Techs also support downside.
- The pair has broken below 20-DMA and major trendline support at 0.8967 and 0.8955.
- We see scope for test of 50-DMA at 0.8732, bearish invalidation above 20-DMA at 0.8967.
- Major support levels - 0.8841 (23.6% Fib), 0.8827 (Oct 7 low), 0.88, 0.8732 (50-DMA)
- Major resistance levels - 0.8960 (trendline), 0.8967 (20-DMA), 0.90, 0.9049 (Nov 2 high)
Recommendation: Good to sell rallies around 0.8900/8910, SL: 0.8960, TP: 0.8840/ 0.8825/ 0.88
