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EUR/GBP upside still to play for post dovish BoE

FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7135 with a high of 0.7149 and a low of 0.7041.

EUR/GBP has been consolidating the upside rally post the BoE announcements, but is reluctant to let go of space at the mid point of the 0.71 handle. There has been a further bid on the profit taking down at 0.7120 and price is stablising here with a bullish bias. The BoE might be expected to hike rates in May 2016 and the dovish report is weighing on Sterling and associated crosses.

EUR/GBP wide levels

Technically, 0.7234 and the 200 DMa keeps a lid on the cross overhead and the downside remains in play below here but analysts at TD Securities said that they think EURGBP may have seen a near-term bottom at 0.7042 and they are targeting a more protracted correction. However, Karen Jones, chief analyst at Commerzbank explained that on the wide, major resistance continues to be seen at 0.7518/42 (this is the location of the previous 43 year uptrend, which should now act as resistance and the 2013-2015 downtrend). "We will maintain our bearish view while capped here".

EUR/USD: Bearish trend signals appear to be strengthening - Scotiabank

EUR appears vulnerable, consolidating around fresh multi-month lows with data-driven weakness (weaker German factory orders) reversing on technical support triggered by the break of 1.0850, said Eric Theoret, FX Strategist at Scotiabank. They maintain expectations of EUR weakness on the basis of central bank policy divergence.
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