EUR/GBP drops to 7-week lows around 0.8720

The buying interest around the Sterling is motivating EUR/GBP to drop further to the 0.8720 area, or fresh 7-week lows.

EUR/GBP closer to 0.8700

The European cross came under renewed selling pressure following the unabated rally in the British Pound, which has been supported further after UK’s job report came in mixed earlier in the session.

It is worth mentioning that the jobless rate stayed put at 4.3%, claimant count change rose by 8.6K and average earnings including bonus rose 2.4%.

On the EUR- side, the shared currency remains strong always on the back of the generalized weakness surrounding the greenback. On the data front, European advanced PMIs for the current month came in mixed following yesterday’s strong flash reading of January’s consumer confidence gauged by the European Commission.

EUR/GBP key levels

The cross is now losing 0.72% at 0.8720 facing the next support at 0.8689 (low Dec.8 2017) followed by 0.8646 (low Jun.8 2017) and finally 0.8380 (low May 10 2017). On the flip side, a break above 0.8826 (10-day sma) would aim for 0.8843 (200-day sma) and then 0.8848 (high Jan.19).