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FxWirePro: EUR/GBP slumps below 0.88 handle, pound surges after BoE leaves policy rate and QE unchanged

EUR/GBP chart - Trading View 

EUR/GBP slumps below 0.88 handle to trade 0.40% weaker at 0.8781 at around 12:20 GMT.

The British pound surged across the board as BoE status quo reiterated that the existing stance of monetary policy is appropriate. 

Further, no mention about negative rates and a slightly optimistic outlook underpin sterling. 

Technical indicators are biased lower. Recovery attempts in the pair were rejected at 200H MA.

GMMA indicator shows major downtrend on near and long-term charts. Price action is below major moving averages.

The pair has broken below Falling Wedge pattern and momentum is strongly bearish. Scope for further weakness.

'Death Cross' (bearish 50-DMA crossover on 200-DMA) reinforces downside. Next major bear target lies at 61.8% Fib at 0.8743. 
 

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