EUR/GBP Trims Losses, Fails Ahead of 0.7800
After bottoming out near 0.7750 in early trade, the subsequent better tone in euro has helped EUR/GBP to erode the pullback and recover the 0.7780 area.
EUR/GBP attention to IFO
The sharp decline from cycle highs near 0.8120 posted in early April seems to have found some decent support in the mid-0.7700s for the time being.
While current risk appetite trends are favouring some EUR-buying, the prospect for the European cross remains vulnerable mainly in light of potential GBP upside on the likeliness of the UK staying in the EU.
Later in the session, Germany will publish its IFO indicator, while CBI’s Industrial Trends Orders are due across the Channel.
EUR/GBP key levels
The cross is now losing 0.01% at 0.7783 facing the next support at 0.7686 (100-day sma) ahead of 0.7650 (low Mar.7) and then 0.7523 (low Feb.3). On the flip side, a breakout of 0.7857 (55-day sma) would aim for 0.7942 (20-day sma) and finally 0.8119 (2016 high Apr.7).