EUR/GBP off highs, testing 0.8640

After reaching fresh 2016 highs near 0.8660 on Friday, EUR/GBP has eased some pips and has now returned to the 0.8635/40 band on Monday.

EUR/GBP attention to GBP docket

The Sterling has intensified its downside throughout last week along with a better tone surrounding the common currency, allowing the European cross to pick up further pace and clinch fresh YTD tops in the vicinity of 0.8660.

Ahead in the week, GBP will remain in centre stage in light of the publication of UK’s inflation figures (Tuesday), labour market results (Wednesday) and retail sales on Thursday. On this side of the Channel, German/EMU ZEW Survey is expected tomorrow.

EUR/GBP key levels

The cross is now losing 0.07% at 0.8638 facing the initial support at 0.8469 (20-day sma) followed by 0.8248 (low Jul.14) and finally 0.8067 (100-day sma). On the upside, a breakout of 0.8658 (2016 high Aug.12) would aim for 0.8778 (high Juk.31 2013) and then 0.8794 (high Mar.12 2013).