EUR/GBP off highs, back to 0.8400 ahead of German CPI

The now softer tone around the Sterling is helping EUR/GBP advance to the area of 0.8400 the figure, closer to earlier highs at 0.8416.

EUR/GBP focus on German data

The European cross is advancing since last Friday, up over a cent since recent lows in the 0.8300 neighbourhood.

The lack of traction in the British pound coupled with a better sentiment around the single currency has given extra support to the cross, which continues to look to break above the ongoing sideline pattern.

Ahead in the session, advanced German inflation figures for the month of July will be in the limelight, with consensus expecting the CPI to rose 0.2% MoM while the broader HICP is seen rising 0.3% on a monthly basis.

EUR/GBP key levels

The cross is now advancing 0.57% at 0.8411 facing the initial barrier at 0.8627 (2016 high Jul.6) ahead of 0.8651 (high Aug.28 2013) and then 0.8712 (high Jul.17 2013). On the flip side, a break below 0.8248 (low Jul.14) would allow a test of 0.8233 (23.6% Fibo of 0.7595-0.8627) and finally 0.8111 (50% Fibo of 0.7595-0.8627).