EUR/GBP keeps 2-day tops near 0.8480

The increasing selling interest around the Sterling has boosted EUR/GBP to fresh 2-day peaks near 0.8480.

EUR/GBP higher on BoE, Carney

The European cross has jumped over a cent to post 2-day tops near 0.8480 following the increasing bearish tone around the British pound after the BoE lowered its refi rate to 0.25% and increased its QE by an extra £60 billion to £435 billion.

At his speech under the Quarterly Inflation Report, Governor M.Carney left the door open for further rate cuts although he showed marginal interest, if any at all, on cutting rates into negative ground. MPC member Hammond also added that the BoE has other appropriate tools to support the economy.

EUR/GBP key levels

The cross is now up 1.02% at 0.8454 facing the initial resistance at 0.8495 (high Aug.2) followed by 0.8627 (2016 high Jul.6) and then 0.8651 (high Aug.28 2013). On the downside, a breach of 0.8383 (23.6% Fibo of 0.7595-0.8627) would expose 0.8248 (low Jul.14) and finally 0.8233 (38.2% Fibo of 0.7595-0.8627).