- EUR/GBP loses the grip and recedes to 0.8540.
- GBP-buying keeps dragging the cross lower.
- ECB Accounts coming up next.
The sterling is prolonging the daily recovery on the back of USD-selling and is now forcing EUR/GBP to retreat to the area of daily lows around 0.8540.
EUR/GBP offered on stronger quid
The European cross is fading Wednesday’s positive price action and retreats to the 0.8540 area in response to the better momentum surrounding the sterling.
In fact, increased and persistent selling pressure around the buck is lending extra oxygen to the pound, encouraging it to leave behind recent softness stemming from poor data releases in the UK docket and rising speculations on further easing by the Bank of England (via lower interest rates).
Nothing scheduled today in the UK calendar, while on this side of the Channel the ECB is expected to publish its minutes (Accounts) of the December meeting.
Further key data releases include US Retail Sales and the Philly Fed index.
What to look for around GBP
GBP managed to shrug off recent poor domestic data and rumours of a rate cut at some point in the short-term horizon. In addition, the currency is expected to remain under pressure in the next months, as economic and political uncertainty are predicted to re-emerge after the Brexit deadline on January 31st. Furthermore, extra effervescence between the EU and the UK is almost priced in, particularly when comes to negotiations on the trade front.
EUR/GBP key levels
The cross is losing 0.08% at 0.8544 and a breakdown of 0.8454 (2020 low Jan.8) would expose 0.8275 (2019 low Dec.13) and then 0.7598 (monthly low Jun.24 2016). On the upside, the next resistance lines up at 0.8595 (2020 high Jan.14) followed by 0.8669 (100-day SMA) and finally 0.8780 (200-day SMA).
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.