EUR/GBP rises toward 0.8900, at the highest since November

A weak pound boosted the EUR/GBP pair, that climbed from 2-day lows to the highest level since November. It is trading at 0.8885/90, almost 50 pips above yesterday’s closing price. 

EUR/GBP break 0.8860, will it hold? 

The euro bottomed at 0.8812 and then rebounded following comments from Bank of England Braodbent. The member of the Monetary Policy Committee failed to keep BoE rate hike expectations high and triggered a slide of the pound in the market. 

BOE not so fast on rate hikes, as Broadbent keeps powder dry

EUR/GBP rose back above 0.8860, a key resistance, and continued to rally. It peaked at 0.8893. It remains near the top, holding a strong tone and challenging the 0.8900 influence zone. 

A consolidation around current levels would confirm the break of the 0.8850 area, adding support for a continuation of the rally. That level capped the upside several times during June. 

The immediate resistance is the 0.8900 handle, followed by 0.8935 (Nov 7 & 8 high) and 0.8980. On the downside, support might be seen at 0.8857/60 (Jul 7 & 10 high), 0.8830 (Jul 10 low) and 0.8810/15 (Jul 11 low).