EUR/GBP flirting with lows near 0.8470

EUR/GBP remains on the defensive in the second half of the week, currently extending the breakdown of the 0.8500 handle.

EUR/GBP attention to EMU, UK data

The bearish note remains unchanged around the European cross today, now losing ground for the third session in a row and approaching the support trendline off July’s low, today in the 0.8460 area.

The persistent selling bias in the common currency coupled with somewhat renewed bids for the Sterling has been weighing on the cross as of late, prompting sellers to step in and prolong the leg lower following the 2016 top near 0.8727 (August 16).

Ahead in the session, final manufacturing PMIs in Euroland and the UK will be in the limelight, ahead of the key US ISM Manufacturing and the speech by ECB’s E.Nowotny.

EUR/GBP key levels

The cross is now retreataing 0.20% at 0.8476 facing the next support at 0.8460 (support trend line off July’s low) followed by 0.8397 (55-day sma) and then 0.8341 (low Aug.4). On the other hand, a surpass of 0.8693 (high Aug.19) would open the door to 0.8727 (2016 high Aug.16) and finally 0.8778 (high Jul.31 2013).