EURGBP in Narrow Trading Range, Ahead of BOE Decision
EURGBP is 0.03% lower at 0.8455 trading in just 20 pips range. Traders await the Fed for fresh clues on the outlook of the U.S. economy and mabe a tip for the future interest rates path. Tomorrow the Bank of England will add to volatility as investors are divided about the outcome of the meeting. The positive economic news out of the UK the last week decreased the odds for a rate cut in the upcoming meeting.
On the Brexit front, the European Parliament will vote later today on the withdrawal agreement before the United Kingdom leaves the European Union on January 31st.
EURGBP managed to rebound from monthly lows at 0.8384 while today is in wait and sees stance ahead of the BOE decision tomorrow. EURGBP momentum is bearish as the sellers are in control below the 50-day moving average.
On the downside, initial support for the EURGBP pair stands at 0.8446 the daily low. Next level to the downside for sellers to watch would be the 0.8407 the low from January 27th. If the GBPUSD pair breaks below that level the next support will be met at 0.8384 the monthly low.
On the upside, immediate resistance for the EURGBP pair will be met at 0.8464 the daily top. The next resistance stands at 0.8497 the 50-day moving average. A break above that level might attract more bids for the next resistance at 0.8553 the high from January 16th.