EUR/GBP pare losses at 0.8350, recovers 100-pips from session low

After tumbling to 0.8250 on BOE inaction, the EUR/GBP cross recovered nearly 100-pips but still remained well offered and is currently trading around 0.8350 region.

After a pause on Wednesday, the cross resumed with its near-term from multi-month highs touched in the previous week. The selling pressure got aggravated as traders rushed to cover their bearish bets against the British Pound after BOE, defying all expectations, left its benchmark interest-rate unchanged at 0.5% and kept its asset purchase facility at £375 billion.

The pair, however, has managed to bounce-off session lows as the meeting minutes kept hopes of further easing by BOE alive at its August meeting. However, the minutes failed to provide any hints over the size and nature of stimulus measure. 

Technical levels to watch

On the immediate upside, momentum above 0.8400 round figure mark could get extended towards session high resistance near 0.8445-50 region, above which the cross seems all set to resume its near-term bullish momentum and head back towards recent daily closing highs resistance near 0.8580-0.8600 region.

Meanwhile on the downside, weakness back below 0.8300-0.8280 now opens room for a break below session lows support near 0.8250 and head towards testing its next major support near 0.8200 handle.