18 Jun 2014
EUR/GBP wavers on BoE mixed signals
FXStreet (Córdoba) - The EUR/GBP hit fresh daily lows and then wavered immediately after the release of the Bank of England June meeting minutes.
Investors hesitated following the minutes release as they seem to throw cold water on Carney’s hawkish stance. The BoE showed concerns amid members that a premature rate rise could lead to “considerable costs” in lost output and that the uncertainty over its impact reinforces case for hiking rate “gradually and cautiously”.
The EUR/GBP fell to a low of 0.7968 as knee-jerk reaction but it bounced to fresh highs at the 0.8000 area shortly after. The pair was last up 0.17% at 0.7997.
EUR/GBP technical levels
In terms of technical levels, the EUR/GBP could find next supports at 0.7968 (Jun 18 low), 0.7958 (Jun 16 low), 0.7955 (Nov 4 2012 low) and 0.7921 (Sep 23 2012 low). On the flip side, resistances are seen at 0.8008 (Jun 17 high), 0.8040 (10-day SMA) and 0.8064 (Jun 12 high).
Investors hesitated following the minutes release as they seem to throw cold water on Carney’s hawkish stance. The BoE showed concerns amid members that a premature rate rise could lead to “considerable costs” in lost output and that the uncertainty over its impact reinforces case for hiking rate “gradually and cautiously”.
The EUR/GBP fell to a low of 0.7968 as knee-jerk reaction but it bounced to fresh highs at the 0.8000 area shortly after. The pair was last up 0.17% at 0.7997.
EUR/GBP technical levels
In terms of technical levels, the EUR/GBP could find next supports at 0.7968 (Jun 18 low), 0.7958 (Jun 16 low), 0.7955 (Nov 4 2012 low) and 0.7921 (Sep 23 2012 low). On the flip side, resistances are seen at 0.8008 (Jun 17 high), 0.8040 (10-day SMA) and 0.8064 (Jun 12 high).