EUR/GBP climbs to highest in 8-months after ECB, eyes 0.9000

The euro rose sharply across the board dung Mario Draghi press conference. On American hours consolidated those gains. EUR/GBP move toward 0.9000, reaching 8-month highs. 

EUR/GBP: best day in months 

The pair remained above 0.8830 earlier today and it started to move to the upside before the ECB decision. It climbed above 0.8900 and gained more strength. It broke above July highs and peaked at 0.8978. 

It is at 0.8960, up more than a hundred pips, having the best performance in months. The euro is about to post the highest close since November 1, 2016. 

The rally took place despite better-than-expected UK retail sales data. A report showed a gain of 0.6% in June versus an increase of 0.4% of market consensus. The pound did not benefit from the data. 

UK retail sales rebound sharply in June, a Big beat on expectations

Later came the ECB. The central bank left QE and interests rates unchanged, as expected. Draghi’s press conference strengthened the expectations for a tapering of the purchase program before the end of the year. The introductory statement contained no surprises. Later, he said that the discussions about QE would take place in autumn.

ECB: QE path not defined yet but slower purchases are coming - Danske Bank

Eyes on 0.9000

EUR/GBP is moving with a clear upside bias and today it rose toward a relevant psychological level: the 0.9000 handle. The last time it traded above was two months after the Brexit referendum. 

The bullish outlook is likely to remain intact as long as price hold above 0.8750. To the upside, above 0.9000, the next strong resistance is seen at 0.9030 followed by 0.9070 (Oct 13 high).