EUR/GBP hits near 8-week tops, around mid-0.8600s

The buying interest around the shared currency remains unabated, lifting the EUR/GBP cross to its highest level since late March.

Currently trading around 0.8640-45 region, testing session tops, spot caught some fresh bids after German Chancellor Merkel's comments on Euro. While speaking on cause of German trade surplus, Merkel's comments that Euro was "too weak" because of the accommodative ECB monetary policy sparked a fresh wave of strength in the shared currency and lifted the cross to near eight-week highs.

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Meanwhile, weaker sentiment surrounding the British Pound, following the latest development surrounding the impending Brexit negotiations and narrowing Conservative Party’s lead for the upcoming UK election, further collaborated to the pair's strong up-surge on Monday.

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Later during the NY session, comments from the UK PM Theresa May, during her scheduled interview on BBC Television, would now be looked upon for some fresh impetus ahead of a pack economic docket on Tuesday. 

Technical levels to watch

On a sustained move above mid-0.8400s, the cross is likely to aim towards surpassing the 0.8675-80 horizontal resistance towards reclaiming the 0.87 round figure mark. 

On the flip side, 0.8625-20 area now seems to act as immediate support, which if broken could drag the cross back towards the 0.8600 handle. A follow through selling pressure might now trigger a corrective slide towards 0.8565 intermediate support en-route 0.8510-0.8500 strong support.