EUR/GBP challenging lows near 0.8360

The solid performance of the British pound as of late has been weighing on EUR/GBP, relegating it to the lower end of the range near 0.8360.

EUR/GBP keeps 5-week lows

The European cross has given away nearly 4 cents since 2016 tops in the vicinity of 0.8730 posted on August 16, losing ground almost uninterruptedly along with a pick up in the demand for GBP and some what steady trade around EUR.

While the Sterling has been supported by recent auspicious results from the UK docket, the single currency remains more concerned on the USD dynamics instead, with the potential timing of the Fed’s rate hike grabbing all the attention.

Previously in the data space, German Factory Orders have expanded below estimates 0.2% MoM in July, while EMU’s GDP is expected to have grown at a seasonally adjusted 0.3% QoQ during the April-June period.

EUR/GBP key levels

The cross is now retreating 0.18% at 0.8365 facing the next support at 0.8341 (low Aug.4) ahead of 0.8248 (low Jul.14) and them 0.8153 (100-day sma). On the other hand, a surpass of 0.8444 (55-day sma) would aim for 0.8479 (resistance line prev support) and then 0.8540 (20-day sma).