EUR/GBP spikes to 0.8610 on GBP flash crash

On a surprise move, EUR/GBP rose more than 50 pips in a minute. The pair climbed from 0.8557 and hit 0.8612. Currently is trading at 0.8580, above the level it had before the jump but off daily highs. 

The rally took place amid a sharp and quick decline of the pound across the board. GBP/USD lost more than a hundred pips in seconds while other currencies remain steady. Now EUR/USD is also moving to the downside, easing the impact on EUR/GBP. There is no clear reason so far for the mini flash-crash. The US dollar gained momentum in the market afterward.

Levels to watch 

Price stopped just a few pips below yesterday’s high. The area around 0.8615 has become a key resistance area followed by 0.8640 and 0.8660 (Mar 15 low). On the downside, support might be seen at 0.8560, followed by 0.8545 and 0.8520/25 (daily low).