EUR/GBP flirting with highs just below 0.8700

EUR/GBP keeps the bullish note intact on Wednesday, advancing to the vicinity of 0.8700 handle following UK and EMU releases.

EUR/GBP bid after UK, EMU data

The European cross is extending its bounce off Monday’s lows in the 0.8620 region, as both the Sterling and the single currency stay on the defensive in a context where the greenback looks to recover further.

In the data space, UK’s labour market report has surprised markets to the upside for the month of December, while inflation figures in the euro area have matched the preliminary prints during the same period.

Looking ahead, the ECB will hold its monetary policy meeting tomorrow, although market participants expect no further announcements from the central bank.

EUR/GBP key levels

The cross is now advancing 0.57% at 0.8678 and a break above 0.8860 (high Jan.16) would aim for 0.9055 (high Nov.2) and finally 0.9143 (high Oct.11). On the other hand, the next up barrier lines up at 0.8621 (low Jan.17) ahead of 0.8594 (20-day sma) and then 0.8561 (55-day sma).