EUR/GBP deflates from tops, back below 0.8800

The softer tone in the Sterling post-Carney’s speech has allowed EUR/GBP to clinch fresh tops above the 0.8800 handle, although losing some momentum afterwards.

EUR/GBP bid after Carney

The European cross gathered extra steam in response to the dovish tone from Governor M.Carney’s speech at Mansion House earlier in the morning.

In fact, Carney assessed that it is now premature to move on rates, adding that domestic inflation pressures still remain subdued.

In the meantime, the cross continues to edge higher following last week’s lows in the vicinity of 0.8710, all within a constructive picture that saw EUR/GBP advancing in 8 of the last 10 weeks.

EUR/GBP key levels

The cross is now up 0.38% at 0.8784 facing the next up barrier at 0.8805 (high Jun.20) followed by 0.8865 (2017 high Jun.9) and finally 0.9055 (high Nov.2 2016). On the downside, a drop below 0.8734 (20-day sma) would aim for 0.8715 (low Jun.16) and then 0.8646 (low Jun.8).

 

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