FxWirePro: EUR/GBP rallies near 3-week peak ahead of BoE's Cunliffe speech
The euro rallied to a near 3-week peak against the British pound on concerns that Britain’s new finance minister Rishi Sunak’s budget announcement in March may disappoint those waiting for a pick-up in fiscal spending. S…
The euro rallied to a near 3-week peak against the British pound on concerns that Britain’s new finance minister Rishi Sunak’s budget announcement in March may disappoint those waiting for a pick-up in fiscal spending.
Sunak is due to announce the newly formed government’s budget on March 11, however, some analysts are doubtful there would be enough increases in spending to stimulate the economy.
Investors now await Bank of England Deputy Governor for Financial Stability Sir Jon Cunliffe's speech for further clues on the strength of the economy.
EUR/GBP is trading 0.5 percent up at 0.8469, having hit a high 0.8472 earlier, its highest since February 10.
Momentum indicators are turning bullish: RSI strong at 56 MACD supports upside and Stochs are biased higher.
Immediate resistance is located at 0.8487, a break above could take it near 0.8504.
On the downside, support is seen at 0.8420, a break below could drag it till 0.8406.
Recommendation: Good to buy on dips around 0.8438, with stop loss of 0.8420 and target price of 0.8487.
