FXstreet.com (Barcelona) - The EUR/GBP dropped for a third day. Both the ECB and the BOE announced their monetary policy decisions today. The euro fell as ECB President Jean-Claude Trichet warned that eurozone growth will be significantly reduced in 2009 and 2010, while inflation will remain well below 2%.
The BOE, ahead of the ECB, already outlined plans to stimulate the UK economy by using quantitative easing. The BOE will buy government and corporate bonds of Â£75 billion financed by the issuance of central bank reserves.
The EUR/GBP broke last year's strong uptrend and is in a downward sloping trading cannel, said Hans Nilsson, analyst at CMS Forex. The pair has so far been unable to penetrate the resistance from the upper trading band and the 0.90 resistance. If this is broken, the pair will gain. There is support in the 0.87 area.