EUR/GBP challenges lows around 0.8420

Pablo Piovano FXStreet

The now bid tone around the Sterling is prompting EUR/GBP to recede towards the area of daily lows in the 0.8420/15.

EUR/GBP lower post-UK data

The European cross keeps the area of 3-week lows near 0.8420 following upbeat results from the UK docket.

In fact, UK’s trade deficit shrunk to £9.71 billion during October from September’s nearly £14 billion deficit, while Construction Output rose at an annualized 0.7% in October, bettering forecasts.

EUR/GBP remains under pressure in light of the recent stance by the ECB and is now looking to consolidate yesterday’s drop from highs near 0.8570 following Thursday’s volatile session.

EUR/GBP key levels

The cross is now retreating 0.26% at 0.8419 facing the next support at 0.8402 (low Dec.6) ahead of 0.8298 (low Dec.5) and then 0.8248 (low Jul.14). On the other side, a surpass of 0.8570 (high Dec.8) would aim for 0.8582 (high Nov.30) and finally 0.8639 (100-day sma).

Sell 33%

Buy 67%

Avg Sell Price 0.8598

Avg Buy Price 0.8454

Liquidity Distribution

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.

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