EUR/GBP flirting with 0.8000, UK data eyed

EUR/GBP is looking to stabilize in the 0.8000 area following yesterday’s sharp pullback from the 0.8100 neighbourhood.

EUR/GBP focus on UK CPI

The recent pick up in the buying interest around the sterling plus some stop-triggering has forced the European cross to abandon the area of multi-month tops above the 0.8100 handle, briefly testing sub-0.80 levels on Monday.

GBP will remain in the driver’s seat ahead in the session in light of the release of UK’s inflation figures during March. Market consensus expects consumer prices to have risen 0.4% on an annualized basis and 0.3% inter-month.

EUR/GBP key levels

The European cross is now up 0.05% at 0.8013 facing the next hurdle at 0.8119 (2016 high Apr.7) followed by 0.8349 (monthly high Feb.6 2014) and finally 0.8401 (2014 high Mar.18). On the flip side, a breakdown of 0.7945 (20-day sma) would expose 0.7825 (low Mar.29) and then 0.7824 (55-day sma).