EUR/GBP trades below hourly 50-MA

EUR/GBP is on the back foot for second straight day in Asia as Sterling continues to attempt a technical recovery from the post Brexit sell-off. The pair trades below hourly 50-MA level of 0.8559.

Focus on UK news flow

The cross is largely at the mercy of the political and economic news flow out of UK. Risk arising out of the UK commercial property market is dominating the wires and would continue to affect Sterling pairs. Meanwhile, political developments in the UK and across Europe could influence the pair as well.

Meanwhile, US non-farm payrolls release later today could affect FX markets. Sterling being on a weaker footing is likely to feel the heat of a strong US data more than the common currency.

EUR/GBP Technical Levels

Acceptance below 0.8556 (38.2% of 2007 low-2008 high), would open doors for a test of psychological level of 0.85. On the higher side, resistance is seen at 0.8627 (previous day’s high), above which the pair could target 0.8665 (Nov 2011 high).