EUR/GBP solid above 0.8500, PMI eyed

After a brief test of the 0.8480 area on Friday, EUR/GBP has now managed to regain the key 0.8500 barrier and is looking to consolidate above it for the time being.

EUR/GBP looks to data

The better tone from the single currency is helping the European cross to advance further north of the 0.8500 handle at the beginning of the week, while the demand for the British pound appears somewhat subdued.

EUR/GBP dipped to fresh 4-week lows on Friday before finding support at the retracement from the February-March up move, in response to a increased EUR-selling mainly coming from ECB news regarding markets misinterpreted the central bank’s statement at the March meeting.

Looking ahead, UK’s Manufacturing PMI for the month of March is due while final PMIs in the euro bloc should not represent any surprise from the preliminary readings.

EUR/GBP key levels

The cross is now gaining 0.31% at 0.8514 facing the immediate hurdle at 0.8556 (100-day sma) followed by 0.8589 (200-day sma) and then 0.8599 (high Mar.31). On the other hand, a breach of 0.8480 (low Mar.31) would expose 0.8417 (low Feb.23) and finally 0.8399 (2017 low Feb.22).