EUR/GBP: sterling weakness ahead of ECB, testing key resistance

Currently, EUR/GBP is trading at 0.8539, up 0.95% on the day, having posted a daily high at 0.8554 and low at 0.8450.

EUR/GBP has rallied on sterling weakness and is testing the upside of the descending resistance line at 0.8550. Brexit concerns and economic data in the UK has gone against the pound, but the euro is not in a position to run away with any trophies just yet, give we have the ECB tomorrow and a dark cloud of the EMU and political concerns should keep the bulls in check. The dollar will quickly come back into focus as we head towards next week's FOMC.

ECB to address three broad areas: QE, shortage of securities and the repo market - BBH

EUR/GBP levels

With spot trading at 0.8539, we can see next resistance ahead at 0.8540 (Daily Classic R3), 0.8554 (Daily High), 0.8558 (Daily 20 SMA), 0.8635 (Daily 100 SMA) and 0.8655 (Weekly Classic R2). Support below can be found at 0.8516 (Weekly Classic R1), 0.8503 (Daily Classic R2), 0.8492 (Hourly 20 EMA), 0.8481 (Daily Classic R1) and 0.8475 (Hourly 200 SMA).