EUR/GBP: drops in dollar rally and post ECB

EUR/GBP is trading with a bearish bias in the sell-off post ECB and with the broad-based dollar rally from 0.8495 highs down to 0.8453 post ECB lows so far.

The event of the day was with the ECB who decided to postpone and action with the stimulus programme unchanged. There was a marginal downward revisions to GDP and inflation forecasts though that have weighed on the euro due to Draghi explaining that inflation will undershoot the ECB's target for the foreseeable future with a rate cut further into negative territory being left on the cards. 

ECB: to continue buying government bonds - BTMU

EUR/GBP has turned south and the prospects of the August 18th low at 0.8592 and the July peak at 0.8614 have been taken off the table for the bulls for the time being with a turn in direction after the previous rally from 0.8420. Continued pressures open up  the 0.8345 August low and the current September low at 0.8338. These levels guard  the July lows at 0.8302/.8252.

EUR/GBP levels

Current price is 0.8457, with resistance ahead at 0.8477 (Daily Classic R2), 0.8483 (Daily 20 SMA), 0.8497 (Daily High), 0.8505 (Weekly Classic R1) and 0.8516 (Daily Classic R3). Next support to the downside can be found at 0.8451 (Daily Classic R1), 0.8447 (Hourly 20 EMA), 0.8446 Hourly 200 SMA), 0.8441 (Weekly Classic PP) and 0.8439 (Weekly High).