EUR/GBP on its way to 0.8400?

The selling mood around the single currency is gathering steam during the morning in Europe, now dragging EUR/GBP to test daily lows in the vicinity of 0.8420.

EUR/GBP in 5-day lows

The European cross is retreating for the third session in a row today amidst the continuation of the sell off around EUR while the Sterling manages well to keep a steady trade for the time being.

EUR/GBP continues to grind lower as market participants keep unwinding its EUR-long positions after the recent victory of centrist Emmanuel Macron at the second round of the French elections (Sunday). On the other hand, GBP appears in a consolidative range ahead of the BoE meeting on Thursday.

Market consensus sees no room for surprises at the BoE meeting later in the week, although GBP could be under pressure in light of the publication of the NIESR GDP Estimate, Industrial Production and Manufacturing Production as well.

EUR/GBP key levels

The cross is now retreating 0.17% at 0.8426 facing the immediate support at 0.8400 (low Apr.28) seconded by 0.8334 (low Apr.19) and then 0.8312 (2017 low Apr.18). On the other hand, a breakout of 0.8448 (20-day sma) would expose 0.8512 (high May 5) and finally 0.8534 (high Apr.25).