EUR/GBP well supported near 0.8500, IFO eyed

It seems EUR/GBP has recovered the smile on Thursday, retaking 0.8500 and above after Wednesday’s deep retracement to the vicinity of 0.8480.

EUR/GBP attention to IFO

After bottoming out in the 0.8500 neighbourhood during early trade, the European cross has managed to pick up pace and surpass the 0.8500 handle, all backed by a renewed bid tone around the single currency while Sterling seems to have lost some of yesterday’s upside feeling.

Data wise in the euro bloc, the German IFO is expected to come in on the strong side today, showing improvements in all of its components for the current month. Of note as well will be the start of the Jackson Hole Symposium, with all the attention on Yellen’s speech due tomorrow.

EUR/GBP key levels

The cross is now gaining 0.08% at 0.8520 facing the initial resistance at 0.8551(20-day sma) followed by 0.8727 (2016 high Aug.16) and then 0.8778 (high Jul.31 2013). On the other hand, a breakdown of 0.8482 (low Aug.24) would expose 0.8441 (support trend line off July’s low) and finally 0.8341 (low Aug.4).