EUR/GBP back below 0.8500 in choppy trade

After advancing to daily highs near 0.8510, EUR/GBP has faded the uptick and has now returned to the 0.8480 region.

EUR/GBP consolidating near 0.8500

The European cross is prolonging its consolidative theme at the beginning of the week, trading in the upper end of the recent range near the key 0.8500 handle.

In spite of the current sideline trading, spot remains poised for further upside via a weaker GBP, all against the backdrop of a dovish BoE and increasing uncertainties regarding the future scenario for the UK economy after June’s ‘Brexit’ vote.

In the data space today, the Sentix index in Euroland has surprised markets to the upside, coming in at 4.2 for the current month.

EUR/GBP key levels

The cross is now up 0.02% at 0.8486 facing the initial resistance at 0.8507 (high Aug.5) followed by 0.8627 (2016 high Jul.6) and then 0.8651 (high Aug.28 2013). On the downside, a breach of 0.8404 (20-day sma) would open the door to 0.8383 (23.6% Fibo of 0.7595-0.8627) and then 0.8248 (low Jul.14).