EUR/GBP finds support near 0.8540, UK data eyed

EUR/GBP is extending its bearish note on Friday, although it seems to have found some dip-buyers in the vicinity of 0.8540 for the time being.

EUR/GBP attention to UK results

The European cross has shed around two cents since Wednesday’s peaks beyond the 0.8700 handle amidst a sharp sell off in the single currency following ECB headlines, while the British Pound has managed to somehow keep the bid tone after PM Theresa May triggered Article 50 on Wednesday.

In the meantime EUR/GBP continues to retrace March’s ‘double tops’ in the boundaries of 0.8800 the figure, while the broader rangebound theme between 0.84 and 0.88 that has been prevailing since the start of the year stays unchanged.

On the data front, EMU’s advanced inflation figures for the month of March will be the salient point today in Euroland, while Q4 GDP figures should also get attention across the Channel.

EUR/GBP key levels

The cross is now retreating 0.05% at 0.8558 facing the immediate support at 0.8545 (low Mar.31) ahead of 0.8482 (78.6% Fibo of 0.8399-0.8788) and finally 0.8399 (2017 low Feb.22). On the upside, a surpass of 0.8588 (200-day sma) would expose 0.8596 (55-day sma) and then 0.8738 (high Mar.29).