EUR/GBP consolidates losses near 0.8800, Pound remains firm

• Pound among top performers on the back of UK data.
• EUR/GBP decline finds support at 0.8800 and the 20-day moving average.

The EUR/GBP is falling for the second day in-a-row on Wednesday on the back of a stronger pound boosted by better-then-expected UK data.

The pair bottomed at 0.8799, the lowest level in a week after the release of the UK services PMI. The Markit indicator jumped to 55.1 in June against a reading 54.0 of market consensus. It was another upbeat report that increased expectations of a rate hike from the Bank of England in August. The data help offset Brexit concerns that remain among the main risks for the pound.

EUR/GBP found support at 0.8800 and rebounded. During the last hours, it has been trading in a range between 0.8815 and 0.8800. The short-term tone favors the downside but a breakout below 0.8795 is needed to clear the way to more losses.

Technical levels

Below 0.8795 support levels might be seen at 0.8760/65 and 0.8735. On the upside, immediate resistance could be located at 0.8815, followed by 0.8830 and 0.8860.