EUR/GBP holds comfortably above 0.90 mark ahead of BOE

The EUR/GBP cross reversed an early dip to over one-month lows and is now holding comfortably above the key 0.90 psychological mark.

The cross managed to catch some fresh bids near the 0.8980-85 region for the third consecutive session and this time the recovery was being led by bullish comments member of the ECB's Governing Council - Bostjan Jazbec.

The shared currency gained some positive traction after Jazbec, Governor of the Bank of Slovenia, was noted saying that though the decision to taper the QE program has been postponed for the time being, it is inevitable.

The pair's uptick, however, lacked strong follow through momentum as investors refrained from placing aggressive bets ahead of the much awaited BOE monetary policy decision, due to be announced in a short while from now.

Technical levels to watch

A follow through up-move beyond 0.9035-40 area, the cross is likely to extend the recovery towards 0.9070 intermediate hurdle before eventually darting towards the 0.9100 handle.

On the flip side, only a decisive break below 0.8985-80 important support would negate any possibilities of a near-term recovery and turn the cross vulnerable extend its corrective slide towards 0.8935 level en-route the 0.8900 handle.