EUR/GBP coming down to test 0.8300

The solid momentum of the British pound is taking a toll on EUR/GBP, dragging it to fresh lows in the 0.8300 neighbourhood.

EUR/GBP focus on data

The European cross is trading in fresh 2-week lows near the 0.8300 handle in response to a continuation of the GBP-rally.

After hitting fresh cycle tops near 0.8630 during last week, the cross has been shedding ground since then and is now losing more than three big-figures as sterling remains strong vs. a consolidative theme in the single currency.

Ahead in the day, final June inflation figures are due in the euro area, while Theresa May is expected to become PM at the end of the day.

EUR/GBP key levels

The cross is now losing 0.54% at 0.8306 and a breakdown of 0.8233 (38.2% Fibo of 0.7595-0.8627) would expose 0.8199 (20-day sma) and then 0.8202 (low Jun.29). On the flip side, the initial hurdle is located at 0.8627 (2016 high Jul.6) ahead of 0.8651 (high Aug.28 2013) and then 0.8712 (high Jul.17 2013).