On Friday, the pair crossed the important support level of 0.8945, a major trendline that the pair has been following since April. Based on the chart, will EURGBP downward momentum continue?
13 September, OctaFX – The euro and pound were little moved against the USD as traders wait for monetary policy decisions from the ECB and BoE. The BoE will be the first bank to release its interest rate decision at 1100 (GMT). Traders don’t expect any changes on monetary policy.
However, they will look at the number of officials who will favour tightening. Thirty minutes later, the ECB will release its decision. Still, traders don’t expect any changes from the ECB. They will look ahead to the statement for clarity about the QE and interest rates hikes.
Will EURGBP downward momentum continue?
Today, the ECB and BoE will release their monetary policy decision. This means that the EURGBP pair will be very active today. On Friday, the pair crossed the important support level of 0.8945.
This was a major trendline that the pair has been following since April. This week, it has stayed below the level and yesterday, it reached a low of 0.8870. Today, it is trading at 0.8920.
On the four-hour chart below, the 100 and 50-day EMA crossed over, which is an indication that the downward momentum could continue. However, this will depend on the monetary policy from the BoE and ECB.
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