EUR/GBP closed the gap near 0.8380

After bottoming out near 0.8380 earlier in the session, EUR/GBP now seems to have regained some buying interest and is now hovering over the 0.8400 handle.

EUR/GBP in 3-week lows

The European cross dipped to fresh 3-week lows in the vicinity of 0.8380, at the same time closing the gap higher seen on April 24 following the first round of the French elections.

The better performance from the British Pound as opposed to the renewed bearish note around the single currency has collaborated with today’s pullback, prompting the cross to trade in red figures for the fourth straight session.

GBP should remain under pressure in light of tomorrow’s BoE meeting, the publication of the MPC minutes and the speech by Governor M.Carney. Consensus among investors signals there is no room for surprises from the Old Lady, leaving unchanged its repo rate at 0.25% and the asset purchase facility at £435 billion.

In addition, UK’s Industrial Production, Manufacturing Production and the NIESR GDP Estimate are all due tomorrow.

EUR/GBP key levels

The cross is now retreating 0.10% at 0.8399 facing the immediate support at 0.8384 (low May 10) seconded by 0.8334 (low Apr.19) and then 0.8312 (2017 low Apr.18). On the other hand, a breakout of 0.8441 (20-day sma) would expose 0.8512 (high May 5) and finally 0.8534 (high Apr.25).