FX Watch: EUR/GBP to Extend Its Downswing Post ECB Decision?

EUR/GBP just turned lower from a longer-term resistance zone ahead of the European Central Bank’s (ECB) monetary policy decision.

Will the pair go back to its intraweek downtrend when the ECB’s decision and the U.K.’s latest GDP and manufacturing reports are released?

As you can see below, yesterday’s USD strength and a bit of risk aversion over the escalating risks of an Iran attack led to EUR/GBP shooting higher during the U.S. session. One possible reason is that GBP bears were more comfortable shorting the British pound than the euro which is exposed to an imminent central bank decision.