FxWirePro: EUR/GBP spikes past 0.84 handle, dovish tilt from BoE and dismal UK manufacturing data dent pound

• BoE left rates and asset purchases unchanged at 0.25% and £435 billion at policy meet as widely expected.
   
• The central bank lowered its GDP forecast for 2017 to 1.9% from 2.0% and revised higher its inflation forecast for 2017 to 2.7% (vs. 2.4% prev.).
   
• The BoE also noted that the UK may need to a tighter policy than yield curve implies.
   
• A slight dovish tilt along with dismal UK manufacturing data attracted downside pressure around the British Pound.
   
• EUR/GBP hit session highs at 0.8443, close above 20-DMA could see gains upto 0.8529 (upper BB).
   
• Immediate support seen at 0.8348 (38.2% Fib), violation there could see drag upto 0.83 (triple bottom).

Support levels - 0.8348 (38.2% Fib of 0.6930 to 0.9225 rise), 0.83 (Dec 5 2016 & Apr 18 low)

Resistance levels - 0.8436 (20-DMA), 0.8490 (trendline), 0.8529 (upper BB)

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -33.1441 (Neutral), while Hourly GBP Spot Index was at 17.0783 (Neutral) at 1120 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.