EUR/GBP drops to lows near 0.8430, GBP outperforms

The solid sentiment around the Sterling is prompting EUR/GBP to test the area of daily lows in the 0.8435/30 band.

EUR/GBP capped by 0.8580

The positive performance of GBP in recent sessions has collaborated with the decline of the European cross from weekly peaks just above 0.8580 to current levels, although it remains well within the recent range.

The better-than-expected reading of UK’s Construction PMI during November has added to the upbeat sentiment around the British Pound, which has been already boosted by positive comments from Brexit Minister D. Davis and EuroGroup’s Dijjselbloem.

Ahead in the day, US Non-farm Payrolls is poised to drive the sentiment in the near term, with consensus seeing the US economy to have added 175K jobs during November vs. October’s 161K.

EUR/GBP key levels

The cross is now losing 0.33% at 0.8440 and a breakdown of 0.8365 (low Dec.1) would aim for 0.8329 (low Sep.6) and finally 0.8281 (200-day sma). On the flip side, the immediate hurdle lines up at 0.8582 (high Nov.30) ahead of 0.8635 (100-day sma) and finally 0.8710 (high Nov.15).