EUR/GBP hits 1-month highs

EUR/GBP climbed to fresh 1-month highs on Tuesday as the pound weakened across the board after dovish comments from BoE’s Ian McCafferty and disappointing UK manufacturing output and trade data for June.      

EUR/GBP reached a peak of 0.8551 before easing slightly. The pair was last trading at 0.8538, recording a 0.45% gain on the day.

BoE policymaker Ian McCafferty said interest rates could fall further and quantitative easing expanded if the UK economic situation worsens.

EUR/GBP levels to consider

In terms of technical levels, next resistances are seen at 0.8585 (Jul 8 high), 0.8613 (Jul 7 high) and 0.8625 (Jul 6 high). On the other hand, supports could be faced at 0.8508 (Aug 8 low), 0.8444 (10-day SMA) and 0.8404 (20-day SMA).