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EUR/GBP trims gains ahead of BOE event

FXStreet (Mumbai) - Sterling is finding some love ahead of the BOE event, pushing the EUR/GBP lower from its daily highs. The pair now trades around 0.7350.

Will BOE surprise?

The consensus estimate is the policy makers at the BOE shall vote 8-1 in favour of maintaining interest rates at record low, while the minutes would carry a cautious tone on account of “global growth slowdown and drop in the Fed rate hike bets”.

However, other side of the story says tightening labor markets and rising house prices could see more than one policymakers voting in favour of a rate hike. It all depends on whether the bank focuses on the rising prospect of delay in Fed liftoff and an increase in the size of QE or on the domestic labor markets.

EUR/GBP Technical Levels

The immediate support is seen at 0.7335, under which the pair could drop to 0.73, followed by 0.7276 (200-DMA). On the higher side, a rally to 0.7442 (Oct 2 high) appears possible in case the offers around 0.7380-0.74 are taken out in one attempt.

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