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Forex pairs in this Article » EUR/GBP (Athens) – The EUR/GBP has been trading sideways since overnight, but the last couple of hours is stucked at a very congested area between 0.8406 – 0.8410.

Today we are ahead of ECB, BOE meetings but we could say that markets might be considering the day mostly as “ECB’s time.” Elaborating on, there are two diverging trends in Europe. Both the Central Banks tried to be engaged with various forms of “forward guidance” in the middle of the year, promising to keep rates low for a long time. Both are unravelling in immensely different ways, with the pressure being now on the ECB to lower rates (or more likely offer alternative policy easing tools, especially after the muted inflation seen in Euro land last week), whilst the Bank of England has continued to see exceptional data undermining the view that rates could be steady for a further two years. Most traders consider that the ECB will not alter the benchmark rate, but as the pressure on the President Draghi becomes bigger, the European Central Bank might keep hopes alive through the press conference, providing a pre-announcement of new measures to provide liquidity to the banking sector.

Technical Aspects on the EUR/GBP

The cross should probably overcome the barrier as of 0.8428 (23.8% of the Fibonacci retracement of the 0.8585-0.8379 area) in order to move higher to the 38.2% Fibonacci level of 0.8457. In such a scenario the cross might manage to climb higher near the 0.8585 highs from 29st October. If the pair breaks below 0.8377, next supports could be found at 0.8365 (Oct 3 low) and 0.8350 (Sep 18 low).
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