EUR/GBP challenges highs near 0.8480

The bid tone around the single currency is allowing EUR/GBP to clinch fresh daily highs in the 0.8480/85 band on Tuesday.

EUR/GBP attention to data

The European cross is trading in fresh 3-week tops near the 0.8500 mark bolstered by the recent pick up in the demand for the common currency as opposed by a steady course seen in the British pound in recent sessions.

Light day ahead on the data front, with only EMU’s Producer Prices and UK’s Construction PMI only due for release.

In the meantime, cautiousness around GBP is poised to grow bigger as we get closer to the key BoE MPC meeting (Thursday), where market consensus expects the central bank to cut rates amongst other easing measures.

EUR/GBP key levels

The cross is now up 0.15% at 0.8481 facing the initial resistance at 0.8627 (2016 high Jul.6) and then 0.8651 (high Aug.28 2013). On the downside, a breach of 0.8413 (20-day sma) would expose 0.8248 (low Jul.14) and finally 0.8233 (23.6% Fibo of 0.7595-0.8627).