EUR/GBP moves to 2-week highs near 0.8820
- EUR/GBP gathers traction and surpasses 0.8800.
- GBP-selling fuels the upside in the cross.
- German Economic Sentiment rebounded in April.
The increasing selling bias around the British pound is helping EUR/GBP to clinch de area of multi-day highs beyond the key barrier at 0.8800 the figure.
EUR/GBP up on GBP-selling
EUR/GBP is navigating multi-day highs on Tuesday, managing to pick up extra pace after breaking above the critical 200-day SMA in the 0.8740 region earlier in the session.
The persistent risk aversion remains sustained by coronavirus concerns and the impact on the global economy. By the same token, the solid demand for the greenback is weighing on both the euro and the quid, although the sell-off in the latter is more pronounced.
In the docket, the monthly UK labour market report came in on a mixed tone after the Claimant count Change increased by 12.1K vs. forecasts for a rise of around 170K and the jobless rate ticked a tad higher to 4.0%. Stil on the soft side, Average Earnings +Bonus expanded 2.8% in February, less than estimated and down from January’s 3.1% gain.
Closer to home, the Economic Sentiment tracked by the ZEW survey improved above consensus in both Germany and Euroland to 28.2 and 25.2, respectively, for the month of April.
EUR/GBP key levels
The cross is gaining 1.08% at 0.8825 and faces the next resistance at 0.8863 (high Apr.6) seconded by 0.9019 (monthly high Oct.20 2019) and then 0.9324 (2019 high Aug.12). On the flip side, a drop below 0.8682 (monthly low Apr.14) would expose 0.8615 (100-day SMA) and then 0.8595 (monthly high Jan.14).