EUR/GBP firmer, challenges 2016 highs near 0.8660

EUR/GBP is now extending its march north, looking to challenge last week’s 2016 tops in the vicinity of 0.8660.

EUR/GBP stronger on GBP-selling

The European cross is extending its rebound from overnight lows in the 0.8620 area, managing to re-test the mid-0.8600s, where sits the 2016 tops in the boundaries of 0.8660.

The selling pressure around GBP keeps gathering traction on Monday, allowing the cross to challenge the upper end of the range and at the same time opening the door for a potential test of 2013 highs at 0.8815. In the meantime, and according to the latest CFTC report, GBP speculative net shorts remain at record levels beyond 90K contracts in the week ended on August 9.

EUR/GBP key levels

The cross is now gaining 0.06% at 0.8649 and a breakout of 0.8658 (2016 high Aug.12) would aim for 0.8778 (high Juk.31 2013) and then 0.8794 (high Mar.12 2013). On the other hand, the initial support lines up at 0.8469 (20-day sma) followed by 0.8248 (low Jul.14) and finally 0.8067 (100-day sma).