Rally in EUR/GBP was halted at 0.8855; it is still firm at 2 tops.

Market Analytics and Considerations

Key Notes

• The resistance level for the Euro is 0.8855 as it has risen to new 2 month tops.
• In light of the BoE’s dovishness, the sterling remains fragile.
• One year ago, EUR/GBP was 0.85, according to Danske Bank.

The Euro’s rise from Tuesday’s European market session’s bottom of 0.8800 has run into resistance around 0.8855. The duo, nevertheless, is still holding firm at 2 peaks, over 0.8830, with both the top from October, at 08865, clearly visible.

Due to a subdued BoE, the sterling is on the defensive.

The Pound has stayed weak in recent days, which has assisted the Euro’s gain of around 3percentage points over the past couple of weeks. Following their monetary policy meeting in December, the Bank of England announced a “conciliatory rise,” which has weighed on the GBP.

With a 0.5% increase and two of the nine members of the committee voting to hold the rates stable, the bank eased down the rate of tight monetary policy. This suggests that the normalizing cycle of the bank may be nearing its conclusion.

Danske Bank analysts have a bearish stance on the pair going forward: We maintain a cautious belief that now the crosses will go somewhat downward as a slowdown in global expansion and the comparative allure of UK securities to investors are favorable for GBP compared to EUR.

Major Important parameters to look for