EUR/GBP challenges highs near 0.7870

EUR/GBP has strongly rebounded from session lows in the 0.7830 area following a renewed softer tone around the sterling.

EUR/GBP turns positive ahead of German CPI

The generalized offered bias surrounding the greenback has helped the British pound to clinch fresh daily highs vs. the single currency earlier in the European morning. However, a fresh bout of ‘Brexit’ fears seems to have been weighing on GBP sentiment, pushing the cross to current levels.

Next on tap in the data space will be the advanced inflation figures in Germany during the current month, ahead of US ADP report (194K exp.) due later in the NA session.

EUR/GBP key levels

The European cross is now gaining 0.01% at 0.7861 facing the next resistance at 0.7947 (2016 high Mar.24) ahead of 0.8007 (monthly high Dec.16 2014) and finally 0.8041 (monthly high Nov.19 2014). On the other hand, a breakdown of 0.7816 (20-day sma) would expose 0.7751 (55-day sma) and then 0.7650 (post-ECB low Mar.10).

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AUD/USD still neutral near-term – UOB

The outlook for the Aussie dollar remains on the neutral side vs. the US dollar in the next 1-3 weeks, according to the research team at UOB Group...
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