EUR/GBP challenges lows around 0.8420

The now bid tone around the Sterling is prompting EUR/GBP to recede towards the area of daily lows in the 0.8420/15.

EUR/GBP lower post-UK data

The European cross keeps the area of 3-week lows near 0.8420 following upbeat results from the UK docket.

In fact, UK’s trade deficit shrunk to £9.71 billion during October from September’s nearly £14 billion deficit, while Construction Output rose at an annualized 0.7% in October, bettering forecasts.

EUR/GBP remains under pressure in light of the recent stance by the ECB and is now looking to consolidate yesterday’s drop from highs near 0.8570 following Thursday’s volatile session.

EUR/GBP key levels

The cross is now retreating 0.26% at 0.8419 facing the next support at 0.8402 (low Dec.6) ahead of 0.8298 (low Dec.5) and then 0.8248 (low Jul.14). On the other side, a surpass of 0.8570 (high Dec.8) would aim for 0.8582 (high Nov.30) and finally 0.8639 (100-day sma).