EUR/GBP: staging minor recovery ahead of Draghi

By FXStreet FXStreet (Guatemala) – EUR/GBP is currently trading at 0.7314 with a high of 0.7359 and a low of 0.7294.

EUR/GBP has found a footing after strong headwinds knocked the bulls down below the 20 SMA on the hourly chart to test the 0.73 handle. The move came in broad based supply in the euro positioning ahead of the ECB announcements along with better than expected retail sales data.

We had the interest rate decision with the ECB staying on hold as widely expected. The main refi rate unchanged at 0.05%, also the deposit rate unchanged -0.20% and the marginal lending rate unchanged 0.30%. We now await the press conference and the market expects a dovish tone and will be listening for hints of QE expansion>.

EURGBP levels

Technically, 0.7492 is a key target to the upside although price direction is headed towards the 55 and 200 day ma at 0.7299/55 levels. Below there are the September lows at 0.7198.
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Source:: FX Street