EUR/GBP deflates from tops, near 0.8650 ahead of UK GDP

After probing the area around 0.8665/70 in early trade, EUR/GBP has now los some upside momentum and has receded to the 0.8650 area.

EUR/GBP attention to data

The European cross found some decent support around Wednesday’s lows in the 0.8600 neighbourhood, driven lower by the renewed sell off in the risk-associated space in favour of a strong greenback.

However, some disappointment following the FOMC minutes weighed on the buck and gave fresh oxygen to both the Sterling and the single currency, pushing the cross higher.

Ahead in the session, UK’s flash GDP figures expect the economy to expand 0.3% during the first quarter. Further UK releases include BBA’s Mortgage Approvals, Total Business Investment and Index of Services.

EUR/GBP key levels

The cross is now up 0.02% at 0.8654 with the next up barrier at 0.8679 (high May 23) seconded by 0.8738 (high Mar 29) and finally 0.8788 (high Mar.14). On the other hand, a breach of 0.8599 (low May 24) would expose 0.8597 (200-day sma) and then 0.8563 (100-day sma).