EUR/GBP testing lows in the mi-0.8500s

The solid performances of the Sterling and the single currency are sending EUR/GBP to visit the lower band of the range near 0.8550.

EUR/GBP gains capped near 0.8600

The European cross is retracing part of Friday’s strong gains following the sharp sell off in the British Pound, currently retreating to the mid-0.8500s after failing to advance further north of 0.8600 the figure last week.

Riskier assets have started the week on a firm note against the backdrop of a generalized offered bias around the US dollar, which is giving away some gains ahead of the key FOMC meeting on Wednesday.

EUR/GBP key levels

The cross is now losing 0.20% at 0.8553 and a breach of 0.8486 (20-day sma) would aim for 0.8416 (low Sep.13) and then 0.8329. On the other hand, the initial up barrier aligns at 0.8591 (high Sep.16) followed by 0.8642 (78.6% Fibo of Aug-Sep drop) and then 0.8727 (2016 high Aug.16).