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Forex pairs in this Article » EUR/GBP (Athens) – The EUR/GBP is struggling to remain above the 0.8400 handle, as ahead of Thursday’s BOE,ECB meetings it seems that the ECB is enforced to loose further monetary policy.

The EUR/GBP has lost solid ground today - roughly 60 pips – and take for granted that just a few days earlier as of the 29th October had spiked much higher nearly 0.8585 we comprehend easily that the cross is under high pressure. Elaborating on, looking behind the curtains we could realize that after upbeat UK PMI Markit data (best since 1997) alongside with the dismal Euro zone data, ECB and BOE have not a lot in common, apart from the fact that their meeting is on Thursday’s. Briefly, it seems that ECB has little choice but to signal –at least- an upcoming loosening monetary policy, whilst BOE is widely expected to offer up a muted policy stance. In such a case scenario, the pair might be under more pressure.

Technical Aspects on the EUR/GBP

Taken for granted the above depicted scenario, the area of 0.8332-0.8340 might be seen very vulnerable and the cross might be driven further downwards in the longer term, near 0.8150 zone.Karen Jones Head Technical Analyst of Commerzbank says that “….Last week the market saw quite a reversal from the 0.8585 peak and plunged lower. Last weeks move looked directional and wewould allow for further losses near term…We would allow for losses to 0.8459 then 0.8388, the 61.8% and 78.6% retracements of the move up from the October low..”
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