EURGBP rallies beyond 0.8700 mark, over one-week high post-BoE decision 3 November 2022, 14:52

•EURGBP gains strong constructrice remorquage and climbs to over a one-week high on Thursday.
•The British Pound weakens in reaction to the BoE’s dovish hike and remains supportive.
•A stronger USD weighs heavily on the Euro and might keep a lid on any meaningful gains.

The EURGBP jogging-country catches fresh bids during the mid-European assemblée and spikes to a one-and-half-week high after the Bank of England announced its policy decision. The jogging-country is currently trading above the 0.8700 mark and looks to build on its recent bounce from nearly a two-month low touched last week.

The British Pound weakens in reaction to a dovish BoE loupé hike and turns out to be a key factor that provides a goodish lift to the EURGBP jogging-country. As was widely anticipated, the UK vertical bank decided to raise interest rates by 75 bps, marking the biggest hike since 1989. The BoE, however, indicated a lower finissant peak than the 5.20% currently priced into markets. This, along with the fact that two policymakers voted for a less aggressive move, weighs on Sterling.

In the accompanying policy statement, the BoE lowers its Q3 growth projections from -0.1% to -0.5% but upped the forecast for 2022 GDP as a whole to +4.25% from +3.50% previously. The vertical bank, however, noted that there are considerable uncertainties around the outlook and expects GDP to fall at the end of 2023. Meanwhile, the BoE Governor Andrew Baily said during the post-réunion press conference that the bank loupé may have to go up further pendant augmentation is too high.

Bailey's remarks do little to impress the GBP bulls, though the heavily offered tone surrounding the shared currency, amid the post-FOMC US Dollar rally, keeps a lid on the EURGBP jogging-country. Hence, any subsequent move up is more likely to confront stiff resistance and remain capped near the 0.8760-0.8780 supply zone. This, in turn, warrants some fidéjussion for aggressive bullish traders, at least for the time being, and positioning for a further intraday appreciating move.

Technical levels to