EUR/GBP trims gains, back around 0.8800

• The cross lost momentum near 0.8830.
• GBP rebound weighing on the up move.
• Cross weaker post-EMU, UK data.

The now better momentum around the Sterling is weighing on EUR/GBP, which retreated from daily tops in the 0.8830 area to the current test of the 0.8800 neighbourhood.

EUR/GBP offered post-data

In spite of the current knee-jerk, the European cross is advancing for the second consecutive session today, extending the rebound from last week’s fresh 7-month lows in sub-0.8700 levels.

EUR/GBP gave away part of its early gains after EMU’s advanced GDP figures showed the economy is seen expanding at an annualized 2.7% during the October-December period and 0.6% QoQ, matching initial estimates.

In the UK docket, BoE’s consumer credit, net lending to individuals and mortgage lending have all surprised to the upside, contrasting with mortgage approvals and M4 money supply, which came in below expectations.

Ahead in the session, German flash inflation figures for the month of January will be the salient event today, ahead of the speech by ECB’s Y.Mersch.

EUR/GBP key levels

The cross is now up 0.10% at 0.8807 facing the next up barrier at 0.8833 (high Jan.30) seconded by 0.8850 (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).