EUR/GBP recovers further above 0.8400

EUR/GBP continues to rise after falling yesterday to 0.8330, the lowest level in six weeks. The pair turned to the upside during Tuesday’s American session and today it continue to climb higher.  Recently it printed a fresh daily high at 0.8429. It was trading at 0.8415/20, up 0.45% for the day.

GBP between UK data and BoE

Earlier, weaker-than-expected UK industrial production data pushed the pair above 0.8400 and it rose further during the presentation of Bank of England official at a parliamentary hearing. Carney mentioned that the economy was a bit stronger that BoE forecast, but the pound dropped further, at a modest pace, across the board.

Tomorrow the key event will be the European Central Bank meeting while next week, it will be the turn of the BoE decision. After today’s statement, the course of monetary policy is likely to remain unchanged at the BoE.

Technical levels

To the upside, resistance levels might be located at 0.8430 (daily high), 0.8445 (Sep 02 high) and 0.8470 (Aug 31 low). On the opposite direction, support could be seen at 0.8400 (psychological), 0.8370/75 (daily low) and 0.8350 (Sep 05 low).