EUR/GBP rebounds from session lows near 0.8850
- The cross came under pressure on GBP-buying.
- Daily upside limited just below 0.8900.
- GBP gained traction post-Autumn Budget.
The better momentum around the Sterling has forced EUR/GBP to retreat from daily tops near 0.8900 the figure to the current area near 0.8860, or session lows.
EUR/GBP weaker on GBP-buying
The demand for the British Pound accelerated following the release of the Autumn Budget, where the OBR trimmed its UK GDP growth forecasts to 1.5% this year, 1.4% in 2018, 1.3% in 2019 and 1.3% in 2020.
In addition, the UK Budget now sees the deficit at 2.4% of GDP IN 2017/18 and expects to be below 2% in 2018/19.
The European cross seems to have found some decent support in the 0.8860 region, as the demand for the single currency stays firm against the backdrop of an increasing selling bias around the greenback.
EUR/GBP key levels
The cross is now up 0.01% at 0.8865 facing the next hurdle at 0.8887 (high Nov.22) seconded by 0.8895 (10-day sma) and then 0.8955 (100-day sma). On the other hand, a breakdown of 0.8841 (low Nov.21) would expose 0.8790 (low Nov.7) and finally 0.8763 (200-day sma).