EUR/GBP off highs, recedes to 0.8470

After climbing to fresh daily highs above the 0.8500 handle, EUR/GBP has now retreated to the area of 0.8470.

EUR/GBP firm on French elections, IFO

The European cross jumped to levels above 0.8500 the figure at the beginning of the week after a wave of buying interest lifted the demand for the single currency following Macron’s win at the French elections.

In addition, the German IFO came in better-than-expected for the current month, with Current Assessment and Business Climate surprising to the upside vs. the miss from the Expectations component.

Data wise, the German lender Bundesbank will publish its monthly report later ahead of the ECB meeting on Thursday. Across the Channel, CBI’s Industrial Trend Orders are due later ahead of Friday’s advanced UK GDP figures for the January-march period.

EUR/GBP key levels

The cross is now gaining 1.19% at 0.8470 and a breakout of 0.8501 (high Apr.24) would aim for 0.8503 (20-day sma) and finally 0.8514 (high Apr.18). On the other hand, the immediate support lines up at 0.8451 (low Apr.24) seconded by 0.8334 (low Apr.19) and then 0.8312 (low Apr.18).