Forex: EUR/GBP ticking lower and supported 0.8430 in London's opening hour

FXstreet.com (London) - EUR/GBP has dropped 17 pips while its seem there is some profit taking in its counterparts, cable and the Euro, after the dollar surged significantly over the past North American and Asian sessions from yesterdays London close.

All of the focus has been on the dollar, while the greenback had strengthened across all major’s, triggered by comments from Fed’s non voting member Posser in favour of calling back QE3 next month. EUR/GBP looks as tough it might be resuming its downward path in the descending channel formation to levels and price action seen yesterday when business was done in the pair after the BoE left rates on hold along with no changes to their asset purchasing programme. EUR/GBP went for a dip into the lower lows of 0.8430. Support is still 0.8430, and the next area to test in the descending channel would be 0.8410 (low May 7) ahead of 0.8400 (low May 6) and finally 0.8398 (low Apr.26). On the upside, a surpass of 0.8473 (high May 9) would then target 0.8488 (high May 8) en route to 0.8497 (high May 1).