EUR/GBP spikes beyond 0.8600, session highs

The increasing selling pressure around the Sterling is now lifting EUR/GBP to re-test the 0.8600 neighbourhood, or session tops.

EUR/GBP up on GBP selling

The European cross is trading in levels last seen in late August above 0.8600 the figure, boosted by the current wave of selling interest hitting the British pound.

EUR/GBP has quickly reverted a negative start of the week on Monday, now advancing for the third week in a row and extending at the same time the rebound from July’s low near 0.8330.

With the BoE and the ECB already out of the way, the upcoming BoJ and Fed meetings will set the tone for the global markets in the near to medium term.

EUR/GBP key levels

The cross is now gaining 0.37% at 0.8610 and a breakout of 0.8642 (78.6% Fibo of Aug-Sep drop) would aim for 0.8727 (2016 high Aug.16). On the other hand, the next support lines up at 0.8492 (20-day sma) ahead of 0.8416 (low Sep.13) and finally 0.8329 (low Jun.9).