EUR/GBP tumbles to lows near 0.8500

Pablo Piovano FXStreet

The bout of buying pressure around the British Pound is now dragging EUR/GBP to test fresh daily lows in the 0.8500 neighbourhood.

EUR/GBP weaker on GBP selling

The European cross met increasing selling pressure at the beginning of the week, coming down to test 2-day lows in the vicinity of 0.8500 the figure, shedding nearly a cent since Friday’s peak just below the 0.8600 limestone.

Nothing expected data wise the euro area while advanced manufacturing/services PMIs are due on Tuesday. In the UK, CBI’s Industrial Trends is up later in the morning while the House of Lords will start a 2-day debate on Article 50 in the afternoon. Tomorrow, UK’s Public Sector finance figures are due along with the speech by Governor M.Carney.

In the meantime, extra gains in the cross appear capped by the 4-month resistance line, today in the mid-0.8600s, while initial support emerges in the 0.8460/50 band.

EUR/GBP key levels

The cross is now retreating 0.46% at 0.8520 and a break below 0.8482 (low Feb.16) would expose 0.8465 (200-day sma) and finally 0.8451 (low Feb.14). On the other hand, the next resistance is located at 0.8595 (high Feb.17) ahead of 0.8648 (high Feb.6) and then 0.8658 (4-month resistance line).

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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