EUR/GBP surges to 0.8500, GBP plummets

EUR/GBP is up nearly a cent since daily lows in the 0.8420/15 band, currently testing the 0.8500 neighbourhood on increasing GBP selling.

EUR/GBP up from 0.8420

A wave of selling pressure has been weighing on the Sterling in the wake of disappointing inflation figures during last month, prompting sellers to quickly fade recent GBP gains and at the same time lifting the European cross to fresh tops near 0.8500 the figure.

The cross is thus printing weekly tops and remains well positioned to test the 0.8505/10 resistance area, where is located the 20-day sma and the resistance trend line off July’s low.

EUR/GBP key levels

The cross is now advancing 0.78% at 0.8491 and a surpass of 0.8506 (20-day sma) would aim for 0.8512 (resistance line prev support) and then 0.8575 (61.8% Fibo of Aug-Sep drop). On the other hand, the immediate support lines up at 0.8329 (low Sep.6) ahead of 0.8248 (low Jul.14) and then 0.8187 (100-day sma).