EUR/GBP finds some support near 0.8610

The better tone in both the Sterling and its European peer has dragged EUR/GBP to fresh lows in the 0.8615/10 band on Monday.

EUR/GBP deflates from recent highs

The European cross has resumed its downside today, extending the drop from last week’s peaks in the 0.8860 area in response to the broad-based continuation of the bid tone in the risk-associated space.

The cross remains wary of the Brexit-related headlines, with tomorrow’s UK Supreme Court ruling emerging as the next risk event around the Sterling. It is worth mentioning that the Supreme Court will rule whether the UK government or the Parliament has the capacity of triggering Article 50. Recall that PM Theresa May expects to invoke Article 50 by end of March this year.

On the data front, EMU’s Consumer Confidence is due later along with speeches by ECB’s Draghi and Praet. Across the Channel, the most significant event will be the advanced UK’s Q4 GDP figures, due on Thursday.

EUR/GBP key levels

The cross is now retreating 0.37% at 0.8619 facing the next support at 0.8605 (low Jan.19) ahead of 0.8577 (low Jan.9) and then 0.8541 (55-day sma). On the upside, a break above 0.8680 (high Jan.19) would aim for 0.8821 (high Jan.17) and finally 0.8860 (high Jan.16).