EUR/GBP back below 0.8400 ahead of BOE decision

The EUR/GBP pair lost its Wednesday's recovery momentum and is now trading back below 0.8400 handle as markets now eagerly await for fresh impetus from BOE monetary policy decision.

On Wednesday, the British Pound gave-up some of its strong gains recorded on Tuesday, weighed down by expectations of additional BOE monetary easing. BOE is scheduled to announce the outcome of its first monetary policy meeting after last month's historic Brexit vote later during European trading session.

Majority of the market participants expect the central bank to go ahead and announce a 25 bps rate-cut, for the first time since 2009. Moreover, markets also seem to be pricing-in possibilities of some quantitative easing in August, which might cap any swift recovery for the pair.

Meanwhile in absence of any economic releases from the Euro-zone, the shared currency continued with its near-term range-bound moves, which eventually seems to hold the EUR/GBP cross stable around 0.8400 handle.

Technical levels to watch

On the immediate downside, 0.8350 level now seems to act as immediate support, below which the cross seems to break through 0.8300 handle and head towards testing its next major support near 0.8225-20 region.

On the flip side, strong bullish momentum above 0.8430-35 immediate resistance now seems to lift the pair back above 0.8500 psychological mark. A sustained move above 0.8500 handle would now confirm resumption of the pair's bullish momentum and boost the pair immediately towards 0.8600 multi-month high resistance.