EUR/GBP plunges to fresh one-month lows, near mid-0.8900s post- BOE

The EUR/GBP cross failed to build on its tepid recovery move and finally broke below 0.8985-80 support area to hit fresh one-month low post-BoE announcement.

The spot ran through fresh offers after BoE’s MPC, on expected lines, voted 7-2 to keep interest rates unchanged at record low level of 0.25%, while there was a unanimous voted to keep monthly asset purchase facility at £435 billion.

The British Pound, however, gained fresh positive traction as the accompanying monetary policy statement, which revealed that policymakers think some withdrawal of stimulus would be appropriate in coming months. 

Technical levels to watch

A follow through weakness would turn the cross vulnerable extend its corrective slide towards 0.8935 level en-route the 0.8900 handle.

On the flip side, any recovery attempts back above the key 0.90 psychological mark might not confront fresh supply near the 0.9035-40 region.