EUR/GBP probing daily highs near 0.8650

Pablo Piovano FXStreet

The now better tone in the single currency has allowed EUR/GBP to leap to session highs in the 0.8650 region after the opening bell in Euroland on Friday.

EUR/GBP boosted on PMIs

The European cross is posting gains for the first time after three consecutive pullbacks, looking to extend the ongoing correction higher after recently bottoming out in the 0.8600 neighbourhood.

EUR managed to revert the initial negative mood after auspicious prints from advanced PMIs in the euro region for the month of March.

The demand for the Sterling has also picked up some pace and is somehow limiting further gains in the cross amidst a bout of selling pressure around the US Dollar.

Nothing scheduled data wise in the UK, where initial jitters following the attacks at Westminster Bridge on Thursday keep diluting. Market attention have already shifted to the end of the month, when PM Theresa May is expected to trigger Article 50 and thus starting the negotiations for the UK-EU divorce, which some analyst have already adventured they could last more than two years.

Looking ahead, the House Republican vote on the American Health Care Act (‘Trumpcare’) should be the salient event later today.

EUR/GBP key levels

The cross is now advancing 0.36% at 0.8643 and a surpass of 0.8654 (20-day sma) would expose 0.8700 (high Mar.22) and then 0.8731 (high Mar.21). On the other hand, the next support is located at 0.8605 (low Mar.23) ahead of 0.8603 (55-day sma) and finally 0.8567 (200-day sma).

1. R3 0.8697
2. R2 0.8677
3. R1 0.8645
PP 0.8625
1. S1 0.8592
2. S2 0.8572
3. S3 0.8540

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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