- The euro rallied, hovering towards a 5-month peak against the British pound as investors digested Bank of England's emergency rate cut.
- BoE cut interest rates by 50 basis points to 0.25 percent, in its first emergency since the global financial crisis more than a decade ago.
- On Wednesday, the pair trimmed some gains after the British government unveiled a 30 billion pound ($39 billion) economic stimulus plan in response to growing worries about the coronavirus.
- EUR/GBP is trading 0.4 percent up at 0.8819, having hit a high 0.8847 on Monday, its highest since October 11.
- Momentum indicators are bullish: RSI strong at 72, MACD supports upside and Stochs are at overbought levels.
- Immediate resistance is located at 0.8868, a break above could take it near 0.8886.
- On the downside, support is seen at 0.8741 (200-DMA), a break below could drag it till 0.8709 (5-DMA).
Recommendation: Good to buy on dips around 0.8787 with stop loss of 0.8766, and target price of 0.8868.
