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EUR/USD, EUR/GBP and GBP/USD pause ahead of rate decisions

EUR/USD and GBP/USD encounter resistance ahead of central bank meetings, EUR/GBP hovers above support pre-BoE.

​EUR/USD’s rally stalls ahead of the ECB meeting

Having risen strongly over the past three days, EUR/USD is beginning to encounter resistance ahead of the European Central Bank’s (ECB) press conference which usually generates some intraday volatility. Both the 55-day simple moving average (SMA) and previous channel support line, now because of inverse polarity, resistance line at $1.1305 to $1.131 cap, together with yesterday’s high at $1.133.

Intraday support is found between the late December and early January lows at $1.1274 to $1.1272. Further, more significant, support sits within the $1.1235 to $1.1222 December lows, only a currently unexpected drop through which would engage the $1.1186 November trough.

In case of renewed upside being seen and yesterday’s high at $1.133 being overcome, the late November and December highs at $1.1382 to $1.1386 would be eyed next.

EUR/GBP hovers above multi-year key support ahead of BoE rate decision

EUR/GBP continues to float above the £0.8313 to £0.8277 key support area ahead of the Bank of England’s (BoE) monetary policy meeting. The support consists of the December 2016, April 2017, December 2019 and February 2020 lows. Because of the multitude of lows seen in this area over several years it is technically important and is likely to continue to hold for now.

The cross would need to exceed this week’s high at £0.836 in order for the November low, 18 and 21 January highs and two-month resistance line at £0.8377 to £0.8381 to be in play.

Initial support comes in at the 11 January low at £0.8324.

GBP/USD rally is taking a breather ahead of BoE meeting

GBP/USD's advance from its late January low at $1.3365 has practically taken it back to the 61.8% Fibonacci retracement of its January decline at $1.3599. Together with yesterday’s high at $1.3587 it offers resistance whilst awaiting the BoE rate decision.

Support is seen between the mid-November high, 38.2% Fibonacci retracement and the 6 January low at $1.3513 to $1.349.

Resistance above the $1.3587 to $1.3599 region can be spotted at the 9 November high at $1.3607.

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