EUR/GBP retreats from highs, back near 0.8600

After a brief adventure to daily highs near 0.8630, EUR/GBP has now deflated to the area near the 0.8600 handle.

EUR/GBP focus back on Brexit

The European cross faded part of the earlier spike to the vicinity of 0.8630 although it so far manages to keep the trade above the key 0.8600 limestone following the opening bell in Euroland.

Renewed jitters on the Brexit negotiations, particularly those related to the €100 billion ‘divorce bill’ claimed by EU officials to the UK have been weighing on GBP sentiment over the weekend and prompted sellers to step in early on Monday.

The Eurogroup meeting should shed further light on the matter at its meeting later in the day. UK’s PM Theresa May suggested that earlier payments made by the UK to EU’s joint projects should be taken into account.

EUR/GBP key levels

The cross is now up 0.19% at 0.8613 and a breakout of 0.8625 (high May 22) would aim for 0.8738 (high Mar 29) and finally 0.8788 (high Mar.14). On the flip side, the immediate support aligns at 0.8596 (200-day sma) seconded by 0.8548 (55-day sma) and then 0.8521 (high May 18).