- The euro rose, extending previous session rebound against the British pound as the euro rallied across the board on signs of likely stimulus from the European Central Bank.
- Sterling further weakened as money markets in Britain priced in a 25 basis points rate cut at the BoE’s March meeting.
- EUR/GBP is trading 0.2 percent up at 0.8687, having hit a high 0.8744 on Wednesday, its highest since October 15.
- Momentum indicators are bullish: RSI strong at 66, MACD supports upside and Stochs are at oversold levels
- Immediate resistance is located at 0.8714, a break above could take it near 0.8743.
- On the downside, support is seen at 0.8632, a break below could drag it till 0.8613 (7-EMA).
Recommendation: Good to buy on dips around 0.8673 with stop loss of 0.8647, and target price of 0.8714.
