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EUR/GBP grinds lower towards 0.7240

FXStreet (Edinburgh) - The offered tone around the shared currency is helping EUR/GBP to test session lows in the 0.7245/40 band so far.

EUR/GBP eyes on UK’s ‘Super Thursday’

After climbing as high as 0.7280 earlier in the week, the European cross has deflated to the current 0.7240 area following a renewed selling pressure in the euro and a consolidative pattern in the sterling.

Interesting day for GBP, as the BoE will hold its monetary policy meeting and will publish its minutes. The broad consensus expects the ‘Old Lady’ to leave the refi rate and the Asset Purchase Facility unchanged, along with an 8-1 vote favouring the current status quo.

EUR/GBP levels to consider

As of writing the cross is retreating 0.22% at 0.7243 with the next support at 0.7208 (55-day sma) followed by 0.7176 (38.2% Fibo of 0.7496-0.6979) and then 0.7101 (23.6% Fibo of 0.7496-0.6979). On the other hand, a break above 0.7299 (61.8% Fibo of 0.7496-0.6979) would aim for 0.7376 (high Oct.21) and then 0.7496 (monthly high Oct.13).

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