EUR/GBP back in the red below 0.7900, awaits BOE

The cross in the EUR/GBP came under heavy selling pressure post-European open, mainly driven by broad EUR sell-off, while the cable trades muted heading into the BOE’s Super Thursday events.

EUR/GBP flirts with 5-DMA at 0.7895

Currently, the EUR/GBP pair trades -0.20% lower at fresh session lows of 0.7891, failing to hold above 0.79 handle. The bearish pressure behind the EUR/GBP cross can be largely attributed to the ongoing weakness in the EUR/USD pair as markets give-up safer bets such as the EUR amid improved risk sentiment.

However, lack-lustre trading activity seen around the GBP/USD pair before the much awaited BOE policy decision, minutes and QIR, keeps the losses in check.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7948/50 (Mar 31 High/ psychological levels) above which it could extend gains to 0.8000 (round number). To the downside immediate support might be located at 0.7853/45 (20-DMA/ daily S2) below that at 0.7800 (round number).