EUR/GBP sees a sharp intraday turnaround in the post-BoE trading action

   “¢   Carney’s comments offset BoE’s lower economic growth forecasts.  
   “¢   Sterling witness a solid turnaround and prompt aggressive selling.

The EUR/GBP cross faded the post-BoE bullish spike to levels beyond the 0.8800 handle and tumbled to 3-day low in the last hour.

The cross did get a minor boost and climbed to an intraday high level 0.8814 in a knee-jerk reaction to the BoE’s downward revision of its economic growth forecasts for this year and 2020.

The UK central bank further added that the headline CPI could temporarily fall below 2% target in coming months and further dented the already weaker sentiment surrounding the British Pound.

The uptick, however, quickly fizzled out, rather met with some aggressive supply at higher levels following the BoE Governor Mark Carney’s comments at the post-meeting press conference.

The British Pound witnessed a solid turnaround after Carney clarified that although Brexit uncertainty is hurting the economy, markets should not prepare for a scenario of a rate cut and (or) no further rate hikes.  

The cross tumbled to levels below mid-0.8700s, retreating nearly 80-pips from session tops, as market participants now look forward to some fresh Brexit updates from the UK PM Theresa May’s meeting with the European Commission President Jean-Claude Juncker.

Technical levels to watch