EUR/GBP firmer, tests highs near 0.8800

• Cross edges higher amidst GBP weakness.
• Comes up from sub-0.8700 lows.
• EU27 ministers will meet today.

The softer tone around the British Pound is helping EUR/GBP to clinch fresh daily highs near the 0.8800 handle at the beginning of the week.

EUR/GBP finds support below 0.8700

The European cross has gathered further upside traction on Monday following a persistent selling bias around the Sterling, extending at the same time the rebound from last week’s 7-month lows around 0.8690.

The cross is expected to remain under pressure today as the EU27 ministers will meet later in the day in order to set the directives for the upcoming Brexit negotiations.

On the data front, speeches from ECB’s S.Lautenschlaeger and B.Coeure are due later in the euro region, while January’s manufacturing PMI is next of relevance in the UK docket (Thursday).

EUR/GBP key levels

The cross is now up 0.17% at 0.8797 facing the next up barrier at 0.8833 (21-day sma) seconded by 0.8848 (200-day sma) and then 0.8941 (high Nov.2). On the other hand, a breach of 0.8687 (low Jan.25) would expose 0.8646 (low Jun.8) and finally 0.8380 (low May 10).