EUR/GBP surges to 0.90 mark post BOE announcement

The EUR/GBP cross reversed post-UK PMI losses and refreshed session tops post BoE announcement.

The British Pound weakened across the board after the BoE's MPC voted 6-2 to leave interest rates unchanged, rather than 5-3 vote in the previous meeting. Meanwhile, the policy makers were unanimous for an unchanged Asset Purchase Target of £ 435 billion. 

The minutes of the meeting also revealed that all on MPC agreed that rise in interest rate should be 'gradual' and 'limited' but did little to lend any support to the British Pound. 

Investors now look forward to the post-meeting press conference, where comments from the BoE Governor Mark Carney's comments would now drive sentiment surrounding the British Pound. 

Technical levels to watch

Bulls would now be aiming to conquer the key 0.90 psychological mark, above which the cross is likely to dart towards 0.9030 hurdle. On the flip side, 0.8965-60 area now becomes immediate support to defend, which if broken could drag the cross towards 0.8920 level en-route the 0.8900 handle.