FxWirePro: EUR/GBP hovers towards 5-month peak, good to buy on dips
The euro rallied, hovering towards a 5-month peak against the British pound as investors digested Bank of England's emergency rate cut. BoE cut interest rates by 50 basis points to 0.25 percent, in its first emergency si…
The euro rallied, hovering towards a 5-month peak against the British pound as investors digested Bank of England's emergency rate cut.
BoE cut interest rates by 50 basis points to 0.25 percent, in its first emergency since the global financial crisis more than a decade ago.
On Wednesday, the pair trimmed some gains after the British government unveiled a 30 billion pound ($39 billion) economic stimulus plan in response to growing worries about the coronavirus.
EUR/GBP is trading 0.4 percent up at 0.8819, having hit a high 0.8847 on Monday, its highest since October 11.
Momentum indicators are bullish: RSI strong at 72, MACD supports upside and Stochs are at overbought levels.
Immediate resistance is located at 0.8868, a break above could take it near 0.8886.
On the downside, support is seen at 0.8741 (200-DMA), a break below could drag it till 0.8709 (5-DMA).
Recommendation: Good to buy on dips around 0.8787 with stop loss of 0.8766, and target price of 0.8868.
