EUR/GBP cuts losses, back around 0.8700

EUR/GBP has managed to rebound from daily lows in sub-0.8700 levels, although it still remains in the negative territory.

EUR/GBP back around 0.8700, EUR recovers

The single currency has reverted the earlier dip and is now regaining some buying interest, motivating the European cross to bounce off lows and retake the 0.8700 neighbourhood.

Earlier dovish headlines from the ECB said the central bank could revise lower its inflation forecasts through 2019, forcing EUR to give away its daily gains. However, latest comments on the matter noted the changes likely to be implemented will be small.

In the meantime, the cross will stay under the microscope in light of the ECB meeting and UK general elections, both events due tomorrow.

 EUR/GBP key levels

The cross is now losing 0.54% at 0.8713 with the next down barrier at 0.8704 (low Jun.5) followed by 0.8653 (low May 30) and then 0.8602 (200-day sma). On the other hand, a break above 0.9772 (high Jun.2) would expose 0.8788 (high Mar.13) and finally 0.8860 (2017 high Jan.16).