EUR/GBP comes down to test 0.8610, session lows

Pablo Piovano FXStreet

The softer tone in the single currency is dragging EUR/GBP lower on Wednesday, currently navigating the lower bound of the daily range in the 0.8620/10 band.

EUR/GBP in 2-day lows

The European cross came under renewed downside pressure today, losing ground for the second session in a row after Monday’s 2-month peaks near 0.8680.

While the British Pound somewhat managed to leave behind initial weakness, the offered bias around its European peer has been gathering traction since yesterday, all collaborating with the ongoing correction lower.

In the data space, positive results from PMIs and the German IFO Survey lent support to EUR earlier in the week, although that effect has already fizzled out. On the opposite side, the Sterling seems to be weathering well the recent terrorist attack in Manchester and some jitters from EU-UK over the Brexit’s ‘divorce bill’.

EUR/GBP key levels

The cross is now losing 0.22% at 0.8611 and a breakdown of 0.8596 (200-day sma) would expose 0.8548 (55-day sma) and then 0.8521 (high May 18). On the upside, the next hurdle aligns at 0.8679 (high May 23) seconded by 0.8738 (high Mar 29) and finally 0.8788 (high Mar.14).

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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