EUR/GBP edges higher to 0.8850

The Sterling is accelerating its daily downside on Monday, now pushing EUR/GBP to the area of daily highs near 0.8850.

EUR/GBP up on GBP-selling

The European cross is advancing for the second session in a row today, trading at shouting distance from Friday’s YTD peaks above 0.8860, always against the backdrop of a persistent selling bias surrounding the British Pound.

GBP gathered further downside pressure today after UK’s Brexit Minister Davis showed no signs of a softer stance ahead of the Brexit talks, while the Conservatives-DUP deal is still a wishful thinking.

On the opposite side, the sentiment around EUR stays bolstered by the results from the French first round at the legislative elections, where Macron’s En Marche party aims for majority. Still in the euro area, ECB's B.Coeure said earlier that inflation in the region is heading towards the right direction, althoug it is still premature to talk about tapering.

Looking ahead, the ZEW Suevey in Germany and the euro bloc are due tomorrow, along with UK’s inflation figures tracked by the CPI. Later in the week, UK’s labour market report, retail sales and the BoE MPC meeting should keep the attention on GBP.

EUR/GBP key levels

The cross is now up 0.69% at 0.8839 facing the next up barrier at 0.8865 (2017 high Jun.9) seconded 0.9055 (high Nov.2 2016) and finally 0.9143 (high Oct.11). On the downside, a drop below 0.8684 (20-day sma) would expose 0.8646 (low Jun.8) and then 0.8609 (200-day sma).