EUR/GBP: Rejected at 200-DMA, hovers around 0.7310

By FXStreet FXStreet (Mumbai) – The bid tone on the EUR failed to push the EUR/GBP pair above its 200-DMA located at 0.7326, opening doors for a falling back towards 0.73 levels.

Sterling supported by a relatively hawkish BOE

The BOE minutes were not as dovish as expected amid growing signs of dovishness among other central banks including the ECB. Consequently, the Sterling managed to cap its losses against the EUR. On the other hand, moderate losses seen in the European equities at the time of writing have kept the EUR/GBP mildly positive.

It remains to be seen if the cross managed to extend the rally for the third consecutive day or profit taking leads to a negative close.

EUR/GBP Technical Levels

The pair currently hovers around 0.7315. The immediate resistance is seen at 0.7326 (200-DMA), above which gains could be extended to 0.7357 (Sept 7 high). On the other side, support is seen at 0.7294 (daily low) and 0.7276 (Sep 3 low).
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Source:: FX Street