EUR/GBP extends the drop to 0.8540, focus on UK data

It seems EUR/GBP has resumed its downside on Friday, now falling to the 0.8545/40 band, or daily lows.

EUR/GBP supported near 0.8480

The European cross is eroding part of Thursday’s gains as the weaker fashion around the greenback is sustaining the demand for both the Sterling and the single currency. Anyway, the cross keeps the trade around 2-week lows for the time being, although decent support seems to have emerged around 0.8480.

Next of relevance in the data space will be UK’s advanced GDP figures for the second quarter, with consensus expecting the economy to expand 0.6% inter-quarter and 1.1% on an annualized basis.

EUR/GBP key levels

The cross is now losing 0.08% at 0.8549 and a breakdown of 0.8482 (low Aug.24) would expose 0.8452 (support trend line off July’s low) and finally 0.8341 (low Aug.4). On the other hand, the initial resistance lines up at 0.8693 (high Aug.19) followed by 0.8727 (2016 high Aug.16) and then 0.8778 (high Jul.31 2013).