EUR/GBP flirts with 0.8400 ahead of PMIs

After bottoming out in the 0.8380 area, EUR/GBP has managed to regain some ground and is now testing the 0.8400 neighbourhood.

EUR/GBP attention to PMIs

Both the Sterling and the single currency are trading on a firm footing at the beginning of the week, as market participants seem to have digested last Friday’s Payrolls figures and the risk on sentiment seems to have returned to the markets.

In the meantime, the European cross is looking to extend the rebound from recent fresh 4-week lows near 0.8370 ahead of final Services PMIs in Europe and the UK for the month of August, as well as EMU’s  Retail Sales during July.

EUR/GBP key levels

The cross is now retreating 0.05% at 0.8396 facing the next support at 0.8372 (low Sep.2) followed by 0.8341 (low Aug.4) and finally 0.8248 (low Jul.14). On the other hand, a surpass of 0.8432 (55-day sma) would aim for 0.8461 (resistance line prev support) and then 0.8552 (20-day sma).