EUR/GBP: all eyes on sterling at 1.30 vs greenback

Currently, EUR/GBP is trading at 0.8797, down -0.06% on the day, having posted a daily high at 0.8812 and low at 0.8780.

EUR/GBP moved into a consolidation following the steep decline to the 0.8770's from a cent higher overnight. Sterling has been a strong performer, taking on resistance at the 1.30 handle in recent trade. Analysts at Nomura suggested that the BoE’s lower tolerance for inflation means downside room for UK real yields is now much more limited, which means downside room for GBP is also much smaller. Meanwhile, from the data, most Germany posted a small rise in YY CPI while EUR/USD retains a bid after a drop in US GDP Q1.

GBP potential for further gains on BoE – Danske Bank

EUR/GBP levels

EUR/GBP is holding above 0.8760, but below the 0.8719 16th June low could trigger losses to the 0.8625/01 near the 200 and 55 day ma. On the upside, a push through 0.8880 opens 0.9025 and 0.9050.  0.9229 is the Oct 2016 high on the wide. GBP/USD at 1.3000 is a milestone while EUR/USD is also a very strong bid through the psychological 1.14000. EUR/GBP on the daily chart is thus consolidating between 0.8760/8880.