EUR/GBP retreats from highs, testing 0.8400

After hitting highs near 0.8470, EUR/GBP has lost momentum during overnight trade and is now coming down to test the 0.8400 neighbourhood, or session lows.

EUR/GBP attention to BoE

The European cross is giving away part of yesterday’s strong gains, resuming the bearish leg and threatening to break below the key support at 0.8400 the figure once again.

Key day for GBP as the Bank of England will hold its MPC meeting and publish its minutes. Market consensus leans towards a 25 bp rate cut, while further easing measures could be in the pipeline in light of the August meeting, as the MPC continues to assess the implications of ‘Brexit’.

EUR/GBP key levels

The cross is now losing 0.31% at 0.8418 and a breakdown of 0.8301 (low Jul.13) would aim for 0.8233 (20-day sma) and then 0.8111 (50% Fibo of 0.7595-0.8627). 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).