EUR/GBP firmer, approaches 0.8600 on Sterling weakness
- The cross moves higher and trades closer to the 0.8600 handle.
- GBP weakness keeps supporting the up move in the cross.
- Halifax house prices rose at a monthly 1.1% MoM in April.
The British Pound remains on the defensive today and is now lifting EUR/GBP to fresh tops in the boundaries of 0.8600 the figure.
EUR/GBP supported below 0.8500
The European cross is up for the third consecutive session on Wednesday, managing to retake the upper 0.8500s and to remain at shouting distance from the critical 0.8600 milestone.
The persistent offered bias surrounding the British Pound in past sessions has allowed the cross to extend the rebound from Monday’s lows in sub-0.8500 levels.
In the data space, house prices tracked by the Halifax index rose at a monthly 1.1% during April and 5.0% from a year earlier, both prints surpassing initial estimates.
Earlier in the session, and back to Brexit, D.Lidington said the UK will likely take part on the EU elections due at the end of the month, while there is still no progress from the cross-party talks between the government and the opposition.
EUR/GBP key levels
The cross is gaining 0.35% at 0.8585 and a break above 0.8615 (21-day SMA) would expose 0.8681 (high Apr.23) and finally 0.8722 (high Mar.21). On the other hand, the next support lines up at 0.8488 (low May 6) followed by 0.8483 (low Mar 27) and then 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.
