EUR/GBP comes down to test 0.7800 ahead of UK CPI

By FXStreet A wave of buying interest around the Sterling has pushed EUR/GBP to fresh daily lows in the 0.7800 neighbourhood early on Tuesday.

EUR/GBP looks to UK CPI

The European cross is navigating 3-week lows in the vicinity of the key support at 0.7800 the figure following a better sentiment around GBP, stemming from stops being triggered, ‘Brexit’ polls and hopes of positive results from today’s inflation figures in the UK economy.

In fact, market consensus expects consumer prices in the British economy to have risen at an annualized 0.5% during April, matching March’s reading. Later in the week, UK’s labour market results (Wednesday) and retail sales (Thursday) will keep GBP in centre stage.

EUR/GBP key levels

The cross is now losing 0.66% at 0.7809 facing the next support at 0.7774 (100-day sma) ahead of 0.7731 (low Apr.26) and finally 0.7509 (200-day sma). On the other hand, a breakout of 0.7947 (high May 4) would open the door to 0.7995 (high Apr.18) and then 0.8119 (2016 high Apr.7).
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Source:: FX Street