EUR/GBP extends the drop below 0.8400

EUR/GBP’s decline is now picking up further pace after breaking below the key support at 0.8500 the figure.

EUR/GBP in 4 –day lows, focus on Carney

The European cross is navigating multi-day lows in the vicinity of 0.8470 on Tuesday in a context dominated by the risk-on sentiment.

In fact, the resurgence of the preference for the riskier assets is helping both the sterling and the single currency today, prompting the cross to extend the drop from last week’s fresh cycle highs near 0.8630.

Ahead in the session, Governor M.Carney is due to speak in the BoE’s Inflation Report Hearings, while German final CPI figures for the month of June are expected to meet preliminary readings.

EUR/GBP key levels

The cross is now losing 0.47% at 0.8474 and a breakdown of 0.8383 (23.6% Fibo of 0.7595-0.8627) would expose 0.8218 (20-day sma) and then 0.8202 (low Jun.29). 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).