EUR/GBP bounces off lows, still below 0.8500

After bottoming out near 0.8470 in early trade, EUR/GBP now seems to have gathered some buying interest and is testing the 0.8490 region.

EUR/GBP well supported around 0.8400

The European cross is reverting a 2-session positive streak so far today, coming down from daily highs beyond 0.8500 the figure and with last week’s lows in the 0.8400 neighbourhood holding the selling impetus.

The favourable risk environment has given extra oxygen to both the Sterling and the single currency this week, leaving the cross to gravitate between 0.8400 and 0.8500 for the time being.

Absent releases in Euroland and the UK, the focus of attention will be on the US calendar, where April’s Non-farm Payrolls are seen at 180K and the jobless rate ticking higher to 4.6%.

EUR/GBP key levels

The cross is now retreating 0.22% at 0.8480 facing the immediate support at 0.8456 (20-day sma) seconded by 0.8452 (low May 4) and then 0.8400 (low Apr.28). On the other hand, a breakout of 0.8509 (high May 5) would expose 0.8534 (high Apr.25) and finally 0.8552 (55-day sma).