EUR/GBP firmer, flirting with 0.8400

The softer fashion around the Sterling is allowing EUR/GBP to try higher levels, currently testing daily tops in the 0.8400 neighbourhood.

EUR/GBP bid on EUR-strength

The European cross is advancing since Friday, prolonging its bounce off recent lows in the vicinity of the 0.8300 limestone sustained by a continuation of the selling bias around GBP.

Poor results from UK’s Services PMI at the end of last week plus today’s comments by M.Weale advocating for extra stimulus at the BoE meeting next month has been weighing on GBP and thus bolstering the upside momentum in the cross.

EUR/GBP key levels

The cross is now advancing 0.54% at 0.8412 facing the initial barrier at 0.8627 (2016 high Jul.6) ahead of 0.8651 (high Aug.28 2013) and then 0.8712 (high Jul.17 2013). On the flip side, a break below 0.8248 (low Jul.14) would allow a test of 0.8233 (23.6% Fibo of 0.7595-0.8627) and finally 0.8111 (50% Fibo of 0.7595-0.8627).