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Forex pairs in this Article » EUR/GBP (Barcelona) - EUR/GBP drifted lower overnight, and slammed close to 40 pips to post a daily low at 0.8408 following this mornings Bank of England meet which saw the MPC vote 9-0 to hold rates, and better than expected unemployment data.

GBP strengthens on MPC rate vote

EUR/GBP has broken lower to where it is presently trading at weekly lows, and approaching support at the hourly 200 SMA at 0.8405. The move comes after the unanimous 9-0 BoE decision to hold rates at 0.25%. In the minutes, the Old Lady of Threadneedle Street stated that further substantial Sterling gains would weaken the recovery, adding to disinflationary pressure, tighter monetary conditions reflect the UK recovery and the inflation rate is projected to fall towards the 2% target in Q1 2014. Elsewhere, Claimant Count Change data improved at -36.7k from -35k expected, and the ILO Unemployment Rate dipped to 7,4% from 7.6% expected.

What are today’s key EUR/GBP technicals?

This morning’s pivot point sits at 0.8454, with support below at 0.8441 (S1), 0.8417 (S2) and 0.8404 (S3) and resistance above at 0.8478 (R1), 0.8491 (R2) and 0.8515 (R3). Hourly RSI sits at 32 and neutral just above oversold territory, while ADX is at 26. The hourly 200 SMA sits at 0.8406 and is sloping higher, with the daily 20 EMA at 0.8389.
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