EUR/GBP in a minor recovery, but below key 200 dma

Currently, EUR/GBP is trading at 0.8377, down -0.17% on the day, having posted a daily high at 0.8404 and low at 0.8333.

US dollar index hits 14-year high in the Fed aftermath

EUR/GBP has made a minor recovery from the aforementioned lows while the dollar remains in charge across the board. The cross is below the 200 dma at 0.8389. While focus remains on the US economy and as markets still digest yesterday's hawkishness from the FOMC, the Bank of England left their Bank Rate unchanged at 0.25% in a 9-0 vote overnight.

"Brexit-related uncertainty is leading to big falls in business surveys regarding investment and hiring plans. At the same time rising inflation is squeezing household spending power and the slowdown in job creation is adding to uncertainty for consumer spending. This combination of weakness from both the household and corporate sectors poses downside risks to growth next year. This will reduce inflation pressures in the medium term so we still think that a rate cut is more likely than a rate hike, - explained James Knightley Senior Economist at ING Bank.

EUR/GBP levels

Analysts at Commerzbank explained that the failures below the 200 day ma will trigger another leg lower to the 0.8170 50% retracement. "The market will remain directly offered below the 0.8581 30th November peak."

Current price is 0.8378, with resistance ahead at 0.8378 (Monthly Low), 0.8385 (Hourly 100 SMA), 0.8389 (Daily Classic PP), 0.8389 (Weekly Low) and 0.8392 (Daily Open). Next support to the downside can be found at 0.8372 (Hourly 20 EMA), 0.8355 (Daily Classic S1), 0.8352 (Yesterday's Low), 0.8333 (Daily Low) and 0.8317 (Daily Classic S2).