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FxWirePro: EUR/GBP erases early gains, focus on BoE monetary policy update

EUR/GBP chart - Trading View 

EUR/GBP edges lower from session highs at 0.9239, gradual decline seen as pair eases from overbought levels.

Market focus on the Bank of England (BoE) monetary policy update. The BoE is expected to leave its policy unchanged after two emergency moves.

The central bank slashed rates to 0.25% in the previous week, after which, the bank's lending rate stands at 0.10%.

Its Quantitative Easing program stands at £645 billion – up £200 billion from the previous levels. 

The BOE also announced a lending scheme worth around £100 billion, in its first coronavirus emergency decision.

Technicals suggest EUR/GBP is set to extend weakness. 5-DMA is sharply lower and Stochs and RSI have rolled over from overbought levels.

'Death Cross' (bearish 50-DMA crossover on 200-DMA) confirmation on the hourly charts adds to the bearish bias.

Support levels - 0.9032 (38.2% Fib), 0.8967 (21-EMA)

Resistance levels - 0.9185 (5-DMA), 0.9210 (23.6% Fib)

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