EUR/GBP around 0.8540 as risk sentiment improves

EUR/GBP has deflated from yesterday’s tops near 0.8570 and is now looking to stabilize around the mid-0.8500s.

EUR/GBP focus on BoE

Better conditions in the risk-associated space along with a persistent selling bias around the greenback has helped both the single currency and the sterling, prompting the European cross to trade within a narrow range.

Absent releases on both sides of the Channel, GBP will remain in centre stage in light of the BoE’s Agents’ Summary of Business Conditions, where UK firms continue to assess the effects of the recent ‘Brexit’ vote.

EUR/GBP key levels

The cross is now losing 0.16% at 0.8537 facing the initial support at 0.8413 (20-day sma) followed by 0.8383 (23.6% Fibo of 0.7595-0.8627) and then 0.8248 (low Jul.14). On the upside, a breakout of 0.8569 (high Aug.9) would aim for 0.8627 (2016 high Jul.6) and then 0.8651 (high Aug.28 2013).