EUR/GBP clings to gains, still below 0.8600

EUR/GBP has faded the earlier bull run to the area of daily tops near 0.8630, returning to sub-0.8600 levels for the time being.

EUR/GBP weaker on UK, EMU data

The European cross is now clinging to its daily gains in the 0.8600 neighbourhood after UK retail sales have come in on the stronger side during last month, while EMU’s final inflation figures tracked by the CPI have matched their preliminary readings, leaving the price action in EUR and GBP in the positive territory.

In the meantime, the cross is extending its consolidative theme around 2-month lows, coming down from November peaks in the mid-0.9000s although finding some decent support in the 0.8570/65 band.

In the data space, the ECB will publish its minutes of the latest meeting, while the release of inflation figures in the US and Yellen’s testimony before Congress should take centre stage later in the day.

EUR/GBP key levels

The cross is now gaining 0.07% at 0.8597 and a breakout of 0.8629 (100-day sma) would expose 0.8710 (high Nov.15) and then 0.8747 (55-day sma). On the downside, the immediate support lines up at 0.8563 (low Nov.11) would open the door to 0.8329 (low Sep.6) and finally 0.8243 (200-day sma).

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