EUR/GBP advances to session highs near 0.8580 on UK data

Poor results from the UK docket today have propelled EUR/GBP to fresh daily peaks in the 0.8580 region.

EUR/GBP in multi-day highs

The European cross extended its weekly upside today after a disappointing report from UK’s Retail Sales.

In fact, headline sales contracted at a monthly 0.3% and Core sales dropped 0.2%, both prints coming in below forecasts for a 0.9% and 0.7% gain, respectively.

EUR/GBP is thus navigating weekly peaks, gaining over a cent since recent lows in the mid-0.8400s. Poor releases in the UK economy this week have been weighing on the Sterling and sustaining the up move in the cross.

Adding to the upside, the single currency has recovered from the negative start of the week, as the rally in the greenback lost some momentum post-Yellen’s testimony.

EUR/GBP key levels

The cross is now gaining 0.28% at 0.8571 and a breakout of 0.8583 (high Feb.17) would expose 0.8648 (100-day sma) and then 0.8663 (4-month resistance line). On the other hand, the immediate support lines up at 0.8482 (low Feb.16) followed by 0.8461 (200-day sma) and finally 0.8451 (low Feb.14).