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-ha…
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.
