EUR/GBP: awaits the outcome of the FOMC and BoE

Currently, EUR/GBP is trading at 0.8389, down -0.08% on the day, having posted a daily high at 0.8432 and low at 0.8362.

EUR/GBP has been testing the daily 200 ma at 0.8379, but similar to the previous attempts at the start of the month, there is a lack of momentum below there and it has been a strong support earlier in the year with a double bottom at 0.7600. 

However, the fundamentals are stacking up with a divergence between the Fed and ECB and with the BoE likely to remain on hold with room for the UK economy to continue growing, despite risks of a hard Brexit, the EU is fragile with a banking crisis on the horizon along with political uncertainties and pending elections. The ECB, however, may have done enough last week to soften the blow of any volatility  until the end of 2017 with the extension of QE, albeit at a slower pace. 

EUR/GBP levels

GBP/USD:  Scope for additional near-term gains - BBH

Spot is presently trading at 0.8393, and next resistance can be seen at 0.8400 (Weekly Low), 0.8411 (Daily Classic PP), 0.8427 (Weekly Classic PP), 0.8432 (Daily High) and 0.8447 (Hourly 200 SMA). Support below can be found at 0.8391 (Hourly 20 EMA), 0.8379 (Daily Open), 0.8378 (Monthly Low), 0.8372 (Yesterday's Low) and 0.8362 (Daily Low).