6 Jun 2013
EUR/GBP 0.8500 with BoE unchanged
FXstreet.com (London) - There was a strong consensus that the MPC would hold as they did in respect to Kings last meeting on asset purchases and rates.
The MPC have left rates as unchanged at 0.5% and have left the asset purchase facility at £375B. There is a market consensus that Europe would however focus more on the ECB 11.45GMT, with less certainty on knowing what Mario will come up with this time around, although sentiment is for the bank to remain steady on policy settings.
EUR/GBP has been trading along the 50-days SMA which is a key support line and is necessary for price to maintain the bullish bias. There could be a continuation of the bullish break out of the falling wedge pattern. Technically, Karen Jones at Commerzbank FX Analyst say’s, “EUR/GBP is facing two tough overhead obstacles. One is the top of the cloud at 0.8607 currently and the second is the 0.8637 April peak. Around this level the currency pair is likely to again lose upside momentum, however. Below 0.8590/85 should see a slide back to the 0.8422 mid-May low. Failure will leave the market weighing on the downside and target the 2013 support line at 0 .8372 and the 2012-13 support line at 0.8359. “ She goes onto say, “A close above 0.8637 will cause our medium term forecast to change from neutral to bullish with the .8716 early February high being back on the map.”
The MPC have left rates as unchanged at 0.5% and have left the asset purchase facility at £375B. There is a market consensus that Europe would however focus more on the ECB 11.45GMT, with less certainty on knowing what Mario will come up with this time around, although sentiment is for the bank to remain steady on policy settings.
EUR/GBP has been trading along the 50-days SMA which is a key support line and is necessary for price to maintain the bullish bias. There could be a continuation of the bullish break out of the falling wedge pattern. Technically, Karen Jones at Commerzbank FX Analyst say’s, “EUR/GBP is facing two tough overhead obstacles. One is the top of the cloud at 0.8607 currently and the second is the 0.8637 April peak. Around this level the currency pair is likely to again lose upside momentum, however. Below 0.8590/85 should see a slide back to the 0.8422 mid-May low. Failure will leave the market weighing on the downside and target the 2013 support line at 0 .8372 and the 2012-13 support line at 0.8359. “ She goes onto say, “A close above 0.8637 will cause our medium term forecast to change from neutral to bullish with the .8716 early February high being back on the map.”