EUR/GBP clings to gains near 0.7850

EUR/GBP is posting meagre gains in the second half of the week following the bearish note around the single currency and the British pound.

EUR/GBP upside capped above 0.7900

The European cross keeps the narrow range today, attempting a consolidation theme after rebounding from weekly lows in the mid-0.7700s on Tuesday.

In the meantime, gains in the cross appear somewhat capped in the 0.7900 neighbourhood for the time being, while falling yields in UK Gilts keep the downside pressure alive around GBP.

On the EUR-side, Draghi has reiterated the need for deeper structural reforms in the region at his speech in Brussels today, while he added that other policies must be aligned with monetary policy.

EUR/GBP key levels

The cross is now gaining 0.01% at 0.7854 and a break above 0.7906 (high Jun.6) would aim for 0.7947 (high May 4) and then 0.8119 (2016 high Apr.7). On the flip side, the next support lines up at 0.7810 (100-day sma) followed by 0.7754 (low Jun.7) and finally 0.7742 (20-day sma).