EUR/GBP challenges lows near 0.8520

EUR/GBP is following the broader sideline theme in both the common currency and the sterling on Monday, currently hovering over the 0.8520 area.

EUR/GBP attention to UK events

The European cross is extending the bearish mood at the beginning of the week, retreating for the third session in a row after last week’s fresh cycle highs near 0.8630.

Post-‘Brexit’ developments continue to be the exclusive driver behind the cross, which remains under scrutiny in light of the BoE’s MPC meeting on Thursday, where market participants expect the central bank to announce either a rate cut or extra qe (or a combinations of both).

EUR/GBP key levels

The cross is now losing 0.02% at 0.8521 and a breakdown of 0.8487 (low Jul.7) would allow a test of 0.8383 (23.6% Fibo of 0.7595-0.8627) and then 0.8190 (20-day sma). On the flip side, the initial hurdle is located at 0.8627 (2016 high Jul.6) ahead of 0.8651 (high Aug.28 2013) and then 0.8712 (high Jul.17 2013).