FxWirePro: EUR/GBP rallies near 3-week peak ahead of BoE's Cunliffe speech

• The euro rallied to a near 3-week peak against the British pound on concerns that Britain’s new finance minister Rishi Sunak’s budget announcement in March may disappoint those waiting for a pick-up in fiscal spending.
  
• Sunak is due to announce the newly formed government’s budget on March 11, however, some analysts are doubtful there would be enough increases in spending to stimulate the economy.
  
• Investors now await Bank of England Deputy Governor for Financial Stability Sir Jon Cunliffe's speech for further clues on the strength of the economy.
  
• EUR/GBP is trading 0.5 percent up at 0.8469, having hit a high 0.8472 earlier, its highest since February 10.
  
• Momentum indicators are turning bullish: RSI strong at 56 MACD supports upside and Stochs are biased higher.
  
• Immediate resistance is located at 0.8487, a break above could take it near 0.8504.
  
• On the downside, support is seen at 0.8420, a break below could drag it till 0.8406.
  

Recommendation: Good to buy on dips around 0.8438, with stop loss of 0.8420 and target price of 0.8487.