EUR/GBP bounces off lows on renewed GBP-selling, around 0.8550
- EUR/GBP met earlier support around 0.8530.
- The 21-day SMA in the 0.8585/90 band caps the upside.
- GBP sold off as Tory lead losses vigour.
The renewed offered bias around the British pound on Tuesday has lifted EUR/GBP to the 0.8575/80 band, where it seems to have met some decent resistance.
EUR/GBP up on poll results
The European cross has regained some poise on Tuesday following the moderate selling bias around the sterling, particularly after earlier news noted that latest UK elections polls showed the Labour Party has trimmed its gap vs. the Tory Party, which leads the vote intention nonetheless.
In fact, Tories remain around the 42%, Labour has ticked higher to 31% while LibDems continue to hover around the 14%/15%.
In the data space, UK’s Gross Mortgage Approvals missed estimates at 41.2K, also down from the previous 42.3K.
In Euroland, the German Consumer Climate tracked by GfK improved a tad to 9.7 for the month of December (from 9.6). Earlier in the session, ECB’s Villeroy reiterated that current low interest rates continue to sustain the economy in the region, collaborating with the bearish note in the euro so far today.
EUR/GBP key levels
The cross is gaining 0.30% at 0.8561 and faces the next barrier at 0.8605 (high Nov.22) seconded by 0.8667 (78.6% Fibo of the May-August rally) and then 0.8676 (high Oct.24). On the other hand, a breach of 0.8521 (monthly low Nov.18) would expose 0.8488 (monthly low May 6) and finally 0.8471 (2019 low Mar.13).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
