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Forex: EUR/GBP recovers from morning plunge pre BoE and ECB

FXstreet.com (Barcelona) - EUR/GBP has had a volatile session, posting a weekly high this morning before falling sharply and recovering.

Spot consistently climbed to post a weekly high at 0.8521 this morning before plunging to 0.8478 as EU PMIs continued to disappoint. The surge lower found support at the hourly 55 MA, just above the Daily S1 level at 0.8475. The recovery to trade at 0.8503 has seen spot retrace to the 61.8% Fibonacci retracement level from the daily high to low, and face near term resistance at the psychologically round 0.8500 handle. Hourly RSI sits at 58 and moving with a slight upside bias, having found support at the 50 level, which has held for the past couple of days. Ahead we have the BoE meet at 12 GMT, the ECB rate decision at 12:45 and the ECB Policy Statement and Press Conference at 13:30 GMT. Most forecasts this morning are for both central banks to keep policy on hold.

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