EUR/GBP off highs, returns below 0.8600

EUR/GBP is posting strong gains following the Asian session on Wednesday, currently hovering over 0.8580/70 after briefly reaching fresh highs above 0.8600.

EUR/GBP stronger on GBP selling

The European cross has gathered extra steam during overnight trade in response to a sharp sell off in the British pound. ‘Brexit’ concerns have escalated further in early trade, prompting the cross to accelerate its upside to levels above the 0.8600 mark, last traded in August 2013.

GBP remains fragile in light of the European open and against the backdrop of prevailing risk aversion. Next of relevance will be the speech by ECB’s M.Draghi, which will be closely followed by market participants.

EUR/GBP key levels

The cross is now up 0.76% at 0.8569 and a breakout of 0.8628 (2016 high Jul.6) would expose 0.8651 (high Aug.28 2013) and then 0.8712 (high Jul.17 2013). On the other hand, the immediate support aligns at 0.8383 (high Jun.27) followed by 0.8062 (20-day sma) and then 0.7888 (55-day sma).