EUR/GBP in red, sidelined in the mid-0.8600s

After reaching fresh highs near 0.8730 during last week, EUR/GBP has now receded towards the 0.8650 area amidst increasing USD sentiment.

EUR/GBP weaker as sellers prevail

Both the Sterling and the single currency are trading on the defensive today following the generalized selling bias in the rest of the risk-associated space.

In fact, the demand for the greenback has gathered further traction today, extending the buying bias from last Friday.

There will be no data releases on both sides of the Channel today, although rumours regarding the triggering of Article 50 by the UK following the Brexit vote plus the meeting between Merkel, Renzi and Hollande in Ventotene (Italy) should keep traders entertained.

EUR/GBP key levels

The cross is now losing 0.14% at 0.8649 facing the initial support at 0.8587 (low Aug.18) ahead of 0.8544 (20-day sma) and finally 0.8341 (low Aug.4). On the other hand, a surpass of 0.8727 (2016 high Aug.16) would expose 0.8778 (high Jul.31 2013) and then 0.8794 (high Mar.12 2013).