Forex: EUR/GBP back to 0.8700 ground after ECB

Despite GBP strength on BoE's decision of keeping its policy as it was (rate at 0.5% and QE at £375B), the EUR boosted particularly on Draghi's press conference where he gave an upbeat speech, underlining his confidence in Eurozone's economic recovery.

The EUR/GBP drop on the BoE was supported around 0.8640, and then the cross shot back up and moved above the 0.8700 line. As of writing, the market trades at 0.8708 (+0.79%) and has printed its daily high at 0.8715.

“EUR/GBP is moving in a horizontal range between the support at 0.8572 (13/12/2013 low) and the resistance at 0.8815 (25/02/2013 high)”, wrote MIG Bank analyst Bijoy Kar, pointing to an hourly resistance at 0.8685 (01/03/2013 high).