EUR/GBP turns positive near 0.8470

The now softer tone in the Sterling is allowing EUR/GBP to return to the positive territory around the 0.8470 area.

EUR/GBP firmer post-ECB

The European cross is now advancing for the third session in a row after the EUR met extra buying pressure following a neutral ECB at its meeting on Thursday. In fact, market participants have perceived as EUR-positive the steady stance from the central bank, which decided to keep its monetary conditions unchanged, including the extension of the QE programme until March 2017.

GBP has shed some ground after the recent rally sustained by very auspicious results from the UK docket as well as extreme speculative positioning.

Nothing worth mentioning data wise in Euroland, while no releases are scheduled across the Channel, all leaving the price action to the mercy of the broader risk trends.

EUR/GBP key levels

The cross is now advancing 0.04% at 0.8474 and a surpass of 0.8490 (resistance line prev support) would aim for 0.8527 (20-day sma) and then 0.8575 (61.8% Fibo of Aug-Sep drop). On the other hand, the immediate support lines up at 0.8329 (low Sep.6) ahead of 0.8248 (low Jul.14) and then 0.8166 (100-day sma).