EUR/GBP sinks to 3-month lows near 0.8400

The solid performance of the Sterling is dragging EUR/GBP to test fresh multi-month lows in the 0.8400 neighbourhood.

EUR/GBP weaker on GBP-strength

The European cross has come under renewed and strong selling pressure today following a solid demand for the British Pound, particularly via a higher GBP/JPY and after shorts continue to be triggered above 1.2600 the fIgure in GBP/USD.

EUR/GBP is retreating for the fifth consecutive session so far after breaking below the multi-week consolidative pattern around the psychological 0.9000 handle seen in late October, all in response to the rejection from highs post-‘flash crash’ near 0.9400 the figure.

In the data space, UK’s manufacturing PMI has missed consensus during November, while PMIs in Euroland have come in mixed during the same period and the unemployment rate in the region ticked lower to 9.8% in October.

EUR/GBP key levels

The cross is now losing 0.56% at 0.8421 and a breakdown of 0.8329 (low Sep.6) would expose 0.8277 (200-day sma) and then 0.8248 (low Jul.14). On the flip side, the immediate hurdle lines up at 0.8582 (high Nov.30) ahead of 0.8610 (20-day sma) and finally 0.8710 (high Nov.15).