EUR/GBP: a fade taking place on London sessison highs capped

Currently, EUR/GBP is trading at 0.8958, up 0.14% on the day, having posted a daily high at 0.8968 and low at 0.8933. The cross is currently a fade on the end of month flows and spike.

EUR/GBP has printed fresh highs as both European and London markets draw towards a close for the month. EUR/USD scored a fresh high as did the pound, scoring a pip away from 1.3200, while the euro made territory up to as high as 1.1832.

GBP/USD spikes to fresh multi-month highs near 1.32 on month-end flows

"The UK MPC meeting comes after tomorrow's PMI data. Those are likely to be robust enough to keep sterling bears at bay. Maybe the week's low in EUR/GBP comes sometime on Wednesday," explained Kit Juckes, an economist at Societe Generale, adding, "New news in Europe seems thin on the ground. The ECB's on holiday, the economy's still got little inflation, but good growth numbers. The policy debate isn't going anywhere. Nor, probably, is the euro.

EUR/GBP levels

"EUR/GBP near term is easing lower from its Fibo resistance," noted analysts at Commerzbank, adding, "EUR/GBP last week tested the 61.8% retracement (circa 0.8987) of the move down from the October 2016 spike high and spent much of the week consolidating below here. Last week's high of 0.8997 remains the breakup point towards 0.9059, the highs from mid-October 2016. The market will now stay immediately bid above the 0.8743 14th July low. Initial support is the 0.8820 near term uptrend and the 0.8781 near term channel."