EUR/GBP deflates from highs, back to 0.7920

The bid tone around the British pound has prompted EUR/GBP to abandon the area of daily highs and return to the current 0.7925/20 band.

EUR/GBP weaker pre-UK data

The European cross is retreating for the second session in a row today after failing to regain the psychological handle at 0.8000 on Monday. A re-emergence of sellers around EUR plus a better tone in the risk-associated assets are collaborating with the downside for the time being.

On the data front, UK’s jobs figures are next on tap, with Claimant Count seen decreasing by a meager 0.1K and the unemployment rate staying put at 5.1% during May. On this side of the Channel, EMU’s trade surplus is expected to have shrunk to €26.0 billion during April.

EUR/GBP key levels

The cross is now retreating 0.21% at 0.7922 and a break below 0.7851 (55-day sma) would expose 0.7819 (100-day sma) and finally 0.7757 (low Jun.7). On the flip side, the next up barrier lies at 0.7987 (high Jun.13) ahead of 0.8000 (psychological level) and then 0.8119 (2016 high Apr.7).