EUR/GBP finds support around 0.9000

EUR/GBP is trading almost unchanged at the end of the week, finding some support in the 0.9000 neighbourhood for the time being.

EUR/GBP consolidating after 2016 tops

The European cross is extending its consolidative theme on Friday, coming down from multi-year tops beyond the 0.9400 handle in response to the recent GBP ‘flash crash’.

The better tone in the Sterling following comments by PM T.May have helped the cross to mitigate some upside pressure along with a generalized offered bias around the common currency.

Further news from UK, and under BoE’s Future Forum 2016, Governor M.Carney said the central bank wants to remove uncertainty around inflation and rates, while MPC M.Shafik has defended the stimulus package implemented in August.

EUR/GBP key levels

The cross is now losing 0.02% at 0.9021 facing the next support at 0.8961 (low Oct.12) followed by 0.8778 (20-day sma) and finally 0.8727 (4-month support line). On the upside, a surpass of 0.9143 (high Oct.11) would expose 0.9430 (2016 high, GBP flash crash Oct.7) and then 0.9802 (monthly high Dec.2008).