The bullish noted around the British Pound at the beginning of the week has dragged EUR/GBP to daily lows in the 0.8460 area for the time being.
EUR/GBP comes down from 0.8500
The European cross is retreating after two consecutive advances on Monday, coming down from recent tops in levels just shy of the key 0.8500 handle seen on Friday.
GBP is recovering ground lost after last week’s significant sell off, particularly during the second half of the week and exacerbated by the steady stance from the BoE and disappointing UK releases.
Later in the week, the Sterling will regain centre stage in light of April’s inflation figures (Tuesday), labour market report (Wednesday) and Retail Sales (Thursday). On this side of the Channel, EMU’s preliminary GDP figures for the first quarter, the ZEW Survey and ECB-speak should keep the attention on the common currency.
EUR/GBP key levels
The cross is now losing 0.14% at 0.8466 and a breakdown of 0.8438 (20-day sma) would open the door to 0.8420 (low May 12) and finally 0.8380 (low May 10). On the flip side, the next hurdle is located at 0.8491 (high May 12) seconded by 0.8512 (high May 5) and then 0.8548 (55-day sma).
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