EUR/GBP clinches tops near 0.8460 on GBP-selling

The now softer tone around the British Pound is helping EUR/GBP to move higher, currently testing daily highs in the 0.8460 area.

EUR/GBP support stays at 0.8380

The European cross is now recording its second consecutive session with gains, prolonging the rebound from weekly lows in the 0.8380 region seen on Wednesday following some pick up in the demand for the common currency.

GBP stays under pressure after the BoE left unchanged its monetary status quo at its meeting on Thursday, reiterating once again that the monetary policy stance could move in either direction. It is worth recalling that the MPC voted 7-1 in favour of maintaining the current status quo (Kristin Forbes vote to hike rates again).

Data wise today, German inflation figures for the month of April and advanced GDP readings for the first quarter have matched expectations.

EUR/GBP key levels

The cross is now gaining 0.30% at 0.8454 and a breakout of 0.8512 (high May 5) would open the door to 0.8534 (high Apr.25) and finally 0.8548 (55-day sma). On the flip side, the next down barrier lies at 0.8380 (low May 10) seconded by 0.8334 (low Apr.19) and then 0.8312 (2017 low Apr.18).