EUR/GBP slumps below 0.7700, BoE eyed

The now better tone around the British pound has dragged EUR/GBP to fresh daily lows near 0.7680.

EUR/GBP lower ahead of BoE’s Inflation Report

The European cross met increasing selling pressure after latest polls from ORB International showed a wider gap favouring the ‘Stay’ vote on the UK Referendum on June 23 (55% vs. 42%), lending extra wings to GBP.

Ahead in the session GBP will remain in centre stage in light of the BoE’s Inflation Report, with Governor Carney and MPC members Broadbent, Weale and Vlieghe testifying before the Treasury Select Committee.

EUR/GBP key levels

The cross is now down 0.75% at 0.7689 facing the next support at 0.7647 (low May 19) ahead of 0.7523 (low Jan.22) and finally 0.7524 (200-day sma). On the flip side, a breakout of 0.7791 (100-day sma) would allow a test of 0.7825 (20-day sma) and then 0.7947 (monthly high May 4).