EUR/GBP probing lows near 0.8770

The renewed bid tone around the British Pound is now dragging EUR/GBP to record fresh daily lows in the 0.8770 region.

EUR/GBP weaker on GBP-buying

The European cross is correcting lower at the end of the week, testing 0.8770, or 3-day lows, in response to an extension of the buying interest surrounding the Sterling.

The cross is now losing ground for the third session in a row today after being rejected from Wednesday’s top around 0.8850.

Auspicious results from advanced manufacturing PMIs in Euroland for the month of June lent extra support to the single currency earlier in the European morning, although the bull run mitigated somewhat afterwards.

On the GBP-side, political jitters seem to have eased a tad after PM Theresa May said today EU citizens living in the UK after Brexit would keep their rights. However, intestine effervescence within the Tory party and a yet elusive deal with the DUP should continue to threaten GBP in the near term at least.

EUR/GBP key levels

The cross is now losing 0.25% at 0.8771 and a drop below 0.8752 (20-day sma) would aim for 0.8715 (low Jun.16) and then 0.8646 (low Jun.8). On the flip side, the immediate hurdle lines up at 0.8848 (high Jun.21) seconded by 0.8865 (2017 high Jun.9) and finally 0.9055 (high Nov.2 2016).