- EUR/GBP is trading in an extremely narrow range as markets await the Bank of England policy meeting.
- The pair made an intraday high of 0.8779and a low of 0.8766 and is currently hovering around 0.7775 levels.
- Markets expect the Bank of England to hike Bank Rate by 25bps, the MPC's first rate hike in over 10 years.
- With the markets having already priced in the rate hike, only a surprisingly hawkish outcome would help the pound extend its rally.
- Focus will then be on the next round of Brexit negotiations on Nov 9th and 10th.
- Technical bias for the major is bearish, but the pair failed to close below 200-DMA on Wednesday's trade.
- A hawkish BoE combined with a break below 200-DMA will see further weakness.
Support levels - 0.8757 (200-DMA), 0.8733 (Nov 1 low), 0.8682 (61.8% Fib retrace of 0.8297 to 0.93065 rally)
Resistance levels - 0.8794 (5-DMA), 0.88, 0.8894 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-eyes-200-DMA-at-08755-good-to-go-short-on-rallies-978952) has hit TP1.
Recommendation: Watch out for decisive break below 200-DMA to go short, target 0.8682.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 32.2752 (Neutral), while Hourly GBP Spot Index was at 128.481 (Bullish) at 0615 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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