EUR/GBP flirting with highs near 0.9040 ahead of ZEW

EUR/GBP keeps the rally well and sound during the first half of the week, looking to consolidate the breakout of the psychological handle at 0.9000.

EUR/GBP focus on ZEW, BoEspeak

The European cross is advancing for the fourth consecutive week so far, attempting a consolidative theme around 0.9000 the figure following last Friday’s GBP ‘flash crash’.

In the meantime, increasing ‘Brexit’ risks continue to weigh on the British Pound and sustain further the upside in the cross. Additionally, the support line off June 24 lows keeps underpinning the up move for the time being.

Data wise, BoE’s M.Saunders is due to speak before the Treasury Select Committee later in the European morning, while the ZEW Survey in Germany and the euro area expected to surprise to the upside for the current month.

EUR/GBP key levels

The cross is now up 0.33% at 0.9037 facing the next hurdle at 0.9430 (2016 high, GBP flash crash Oct.7) followed by 0.9802 (monthly high Dec.2008). On the downside, a breach of 0.8724 (20-day sma) would aim for 0.8689 (4-month support line) and then 0.8329 (low Sep.6).