EUR/GBP retreats from daily highs near 0.8540
- EUR/GBP fades the uptick to the 0.8540/45 band.
- Pound, euro stay under pressure on bid greenback.
- Conservatives keep leading the election polls.
The selling pressure around the single currency has forced EUR/GBP to recede from earlier tops in the 0.8540/45 band.
EUR/GBP remains focused on the UK elections
The European cross maintains the bearish bias in the area of 6-month lows around the 0.8500 mark, mainly in response to the persistent cautious/selling stance from the euro while the sterling found further excuses to keep the positive bias on speculations that the Tory party could win majority at the upcoming general elections.
In the meantime, the cross is about to close its fourth consecutive month with losses, almost fully reversing the May-August impressive rally that started at as low as 0.8488 and met strong hurdle in the area just beyond 0.9300 the figure (August 12th).
In the docket, German Retail Sales contracted nearly 2.0% MoM during October while the unemployment rate came in unchanged at 5.0% for the current month. Moving to the euro area, flash inflation figures now see headline consumer prices rising 1.0% YoY and 1.3% YoY when comes to prices excluding food and energy costs.
On the other side of the Channel, BoE’s Consumer Credit expanded more than expected £1.326 billion during October and Net Lending to Individuals rose to £5.6 billion in the same period. Further UK data saw Mortgage Approvals shrinking a tad to 64.6K units last month.
EUR/GBP key levels
The cross is advancing 0.01% at 0.8525 and faces the next barrier at 0.8605 (high Nov.22) seconded by 0.8667 (78.6% Fibo of the May-August rally) and then 0.8676 (high Oct.24). On the other hand, a breach of 0.8499 (monthly low Nov.28) would expose 0.8488 (monthly low May 6) and finally 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.
