EUR/GBP teases six-month high, but skids back into recent price levels near 0.8750

• The EUR/GBP saw a brief rally on Thursday, but momentum proved short-lived.
• The Euro continues to sniff out higher ground against the Pound, but upside gains continue to get filtered.
• Friday to close out the trading week with UK Retail Sales on offering.

The EUR/GBP waffled on Thursday, clipping into a six-month high of 0.8766 before slipping back to the day’s opening bids on the south side of 0.8750.

The economic calendar was a thin showing for the EUR/GBP, with a collection of low-impact speeches from policymakers at the European Central Bank (ECB) and the Bank of England (BoE). Most of the speeches were prepared remarks.

Friday will wrap up the trading week with UK Retail Sales and EU inflation figures.

UK Retail Sales in October are expected to rebound from September’s -0.9% decline, forecast to print at 0.3%, while pan-EU Harmonized Index of Consumer Prices (HICP) for October are pretty much set in stone.

As a non-preliminary report, Friday’s EU HICP is a confirmation of previously-released figures, and are firmly expected to print as-reported. EU October HICP is forecast at 0.2% for the month-on-month figure and annualized HICP inflation is seen at 2.9%.

EUR/GBP Technical Outlook

The Euro’s march up the charts against the Pound Sterling has run into consolidation pressure above the 200-day Simple Moving Average (SMA) grinding down into the 0.860 level. Despite ticking into consecutive new highs, the EUR/GBP is spending most of its time trapped within familiar price levels.

A rising trendline from late August’s lows near the 0.8500 handle is providing additional support alongside the 50-day SMA, which is accelerating into the 0.8680 level and is set for a bullish crossover of the 200-day SMA. 

Barring a bearish breakdown in the near- to medium-term, prices can be expected to continue catching a ride on technical momentum slowly pushing the pair higher.

EUR/GBP Daily Chart

EUR/GBP Technical Levels