EUR/GBP testing 5-month tops around 0.8900
|- EUR/GBP moves higher and tests 0.8900 earlier in the session.
- The buying interest in EUR sustains the upside.
- EMU flash inflation figures next of relevance in the docket.
The continuation of the buying pressure around the European currency is lifting EUR/GBP to new multi-month tops in the critical 0.8900 neighbourhood.
EUR/GBP looks to data, Brexit
The European cross keeps the impressive rally well and sound in the first half of the week, posting losses in only three sessions since early May and gaining nearly 5% since lows in sub-0.8500 levels (May 6).
In addition, increasing uncertainty around the Brexit negotiations plus mounting speculations over the successor of Theresa May at Number 10 has been collaborating with the downbeat note around the British Pound.
On this front, President Trump said the US is ready to clinch a trade deal with the UK post-Brexit, while French President Emmanuel Macron reiterated there will be no further delays after the October 31 Brexit deadline.
Data wise, preliminary inflation figures in Euroland for the month of May are coming up next ahead of the critical ECB event on Thursday.
EUR/GBP key levels
The cross is gaining 0.20% at 0.8894 and a break above 0.8902 (high Jun.4) would expose 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3). On the flip side, the next down barrier aligns at 0.8834 (10-day SMA) seconded by 0.8783 (200-day SMA) and then 0.8724 (low May 21).
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