EUR/GBP sitting at 0.8780 as Super Thursday looms

• Bank of England’s Super Thursday is on the traders’ radar. 
• EUR/GBP is testing the 50-period simple moving average on the daily and 4-hour chart. 

The EUR/GBP is trading at around 0.8789 down 0.06% in Tuesday’s trading. 

The EUR/GBP fell about 60 pips from the highs in the Asian session. Some bulls took profits near the 0.8840 resistance while some bears opened fresh short positions. The pair is now resting at its 50-period simple moving average on the daily and 4-hour chart. while investors are positioning themselves ahead of the Bank of England’s Super Thursday.

Indeed, the major event for the British pound is due Thursday this week with the Bank of England (BoE) monetary policy meeting which is also set to release the quarterly Inflation Report providing key information of the BoE’ monetary policy. It will be followed by press conference with the Bank of England Governor Mark Carney. After the string of poor macroeconomic data in the UK and dovish comments from BoE’s officials, market participants are widely expecting the central bank to leave interest rates unchanged at 0.5% and the £435 billion asset purchasing program unaltered as well. Some analysts expect the next rate hike possibly in November of this year while in April, before the poor macroeconomic data-release, traders were anticipating a BoE’s rate hike in May. 

Earlier in the day in the UK, the Halifax House Prices came strongly below expectations. The negative low-tier data further compound the already negative sentiment on GBP. 

EUR/GBP 4-hour chart 

The medium-term trend is bullish and resistances are priced in at the 0.8840 supply level and at the 0.8900 figure while current support is at the 0.8780 level and then at the 0.8682 swing lows.