EUR/GBP rally faltered ahead of 0.8850, focus on PM May

  • The cross met moderate resistance near 0.8850.
  • UK Retail Sales surprised to the upside in April.
  • All attention on the probable resignation of PM T.May.

The now improved tone around the Sterling is prompting a correction lower in EUR/GBP to the 0.8825/20 band.

EUR/GBP focused on data, Brexit

The European cross is shedding part of the recent strong gains in response to the better mood around the British Pound in recent hours.

In fact, today’s results from the UK docket saw Retail Sales coming in flat on a monthly basis during April and expanding 5.2% from a year earlier. In addition, Core sales contracted 0.2% inter-month and 4.9% over the last twelve months, all prints coming in above initial estimates.

On the Brexit front, (still) PM Theresa May is facing critical hours as pressure for her departure continues to escalate, particularly after Commons Leader A.Leadsom stepped down earlier in the week. Furthermore, PM May’s Brexit plan is not expected to be debated before early June.

EUR/GBP key levels

The cross is retreating 0.13% at 0.8821 and faces the next support at 0.8788 (200-day SMA) seconded by 0.8724 (low May 21) and then 0.8624 (55-day SMA). On the other hand, a break above 0.8839 (monthly high May 22) would expose 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD bouncing modestly on disappointing US Consumer Confidence

The shared currency remains pressured by the idea that the ECB will come out with massive stimulus measures in September. US Michigan Consumer Confidence down to 92.1 brakes dollar's gains.


GBP/USD retreats sharply after approaching 1.2200

The GBP/USD pair came under selling pressure after flirting with weekly highs, as a dismal US confidence report brought back risk-off. GBP/USD still up for the week and above the critical 1.2100 level.


USD/JPY: Greenback makes modest progress against Yen, near 106.30

The demand for Yen as a safe-haven currency has been weak in the last three days. The levels to beat for bulls are at the 106.30 and 106.55 resistances.


Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News

Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more