The broad-based range-bound prevailing in both the Sterling and the shared currency is prompting EURGBP to follow the same theme in the 0.9100 area.
1 August 2019, GKFX – The European cross has managed to rebound from Wednesday’s lows in the 0.9090/85 band and regained the 0.9100 neighbourhood amidst the persistent selling bias in EUR and some tepid recovery attempt in the Sterling.
Today, the BoE failed to ignite a noticeable reaction in the British Pound after leaving unchanged its refi rate and the asset purchase facility at 0.75% and £435 billion, respectively. Surprisingly, the central bank refused to comment on Brexit.
Speaking about Brexit, latest news said the government is planning an extra £2.1 billion to prepare for a ‘no deal’ outcome when the October deadline is just around 90 days away. The fresh funds would be oriented to increase border officers and to improve transport infrastructure at UK ports.
EURGBP technical analysis
The cross is gaining 0.13% at 0.9113 and faces the immediate hurdle at 0.9190 (2019 high Jul.30) followed by 0.9225 (2016 high Oct.7) and finally 0.9306 (2018 high Aug.29). On the other hand, a drop below 0.9088 (low Jul.31) would open the door to 0.9051 (high Jul.17) and then 0.9006 (21-day SMA).
This article was provided by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.