EUR/GBP advances through 0.8700, fresh tops

The buying pressure around the single currency is now pushing EUR/GBP to fresh highs above the 0.8700 handle.

EUR/GBP focus on ZEW, UK CPI

The broad-based weakness hitting the greenback has boosted the demand for the single currency, in turn pushing the European cross beyond 0.8700 the figure, levels last traded in August 2013.

The cross will remain in the limelight, as UK’s CPI figures are next on tap followed by the German/EMU ZEW Survey. Consensus expects consumer prices in the UK economy to have contracted 0.1% MoM in July, while the ZEW Survey should have improved in August.

EUR/GBP key levels

The cross is now up 0.36% at 0.8715 facing the initial up barrier at 0.8778 (high Jul.31 2013) and then 0.8794 (high Mar.12 2013). On the other hand, a breakdown of 0.8490 (20-day sma) would open the door to 0.8260 (55-day sma) and finally 0.8248 (low Jul.14).