EUR/GBP off lows, approaches 0.8500 ahead of BoE

After bottoming out in the 0.8470 area, EUR/GBP has managed to pick up pace and regain some upside traction to the current 0.8485/90 band.

EUR/GBP attention to BoE, UK releases

Yesterday’s late and strong rebound of the Sterling has promoted the cross to fade the violent spike to the vicinity of 0.8550, retreating nearly a cent where it seems to have found some decent support.

GBP will remain in centre stage ahead in the session, as the Bank of England’s interest rate decision is due along with UK’s Retail Sales for the month of August.

Prior surveys see the central bank sticking to its monetary status quo at today’s meeting after incurring in further easing in August. Headline Retail Sales, however, are expected to have contracted 0.5% MoM during last month.

EUR/GBP key levels

The cross is now retreating 0.11% at 0.8492 facing the next support at 0.8416 (low Sep.13) followed by at 0.8329 (low Sep.6) and then 0.8248 (low Jul.14). On the other hand, a surpass of 0.8532 (resistance line prev support) would aim for 0.8575 (61.8% Fibo of Aug-Sep drop) and then 0.8727 (2016 high Aug.16).