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EUR/GBP upside halted ahead of 0.7200

FXStreet (Edinburgh) - The strong performance of the single currency on Thursday left the EUR/GBP knocking on 0.7200’s doors, currently hovering around the 0.7180 area.

EUR/GBP attention to PMIs

The shared currency has rallied yesterday in response to the dovish tone from the FOMC minutes on Wednesday, while market participants continue to push back expectations of a Fed’s rate hike for later in the year, probably December. All this giving further legs to EUR, and allowing at the same time a strong rebound in the cross.

Ahead in the session, preliminary PMIs in the euro area will take centre stage as well as developments from Greece following the resignation of PM A.Tsipras and the likeliness of snap elections in September.

EUR/GBP key levels

At the moment the cross is advancing 0.19% at 0.7179 and a breakout of 0.7202 (high Jul.13) would open the door to 0.7223 (high Jul.10) and finally 0.7250 (high Jun.16). On the other hand, the initial support lines up at 0.7085 (low Aug.20) followed by 0.7026 (low Aug.19) and then 0.7016 (low Aug.7).

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