EUR/GBP targets 0.8850 as Sterling melts

• Much weaker Sterling pushes the cross to fresh 4-day peaks.
• Brexit concerns keep fuelling the upside and weighs on GBP.
• Manufacturing PMI and speeches by Carney, May next of relevance.

The selling pressure around the British Pound is now accelerating and is helping EUR/GBP to clinch fresh multi-day peaks in the boundaries of the 0.8850 region.

EUR/GBP up on GBP-selling

The European cross is pushing higher towards the mid-0.8800s following the renewed and strong offered sentiment surrounding the British Pound, particularly after the publication of the EU’s Brexit draft.

In addition EU’s Chief Negotiator M.Barnier said earlier that Brexit transition is not a given at the moment, while PM T.May asserted there will be no hard Irish border post-Brexit.

In the data space, EMU’s flash CPI for the month of February expects prices to advance 1.2% YoY and 1.0% YoY when stripping food and energy costs. Back to the UK, the next relevant release will be February’s manufacturing PMI (Thursday) and speeches by Governor M.Carney and PM T.May (Friday).

EUR/GBP key levels

The cross is now up 0.52% at 0.8841 facing the next up barrier at 0.8884 (200-day sma) seconded by 0.8911 (high Feb.6) and then 0.8922 (high Feb.14). On the other hand, a breach of 0.8770 (low Feb.26) would expose 0.8732 (low Feb.8) and finally 0.8715 (low Feb.1).