EUR/GBP rises toward 0.8500, 1-week high

EUR/GBP rebounded from the 20-hour moving average and climbed to 0.8499, hitting the highest level since April 26. The euro remains near the highs holding above previous weekly highs. 

The euro has been moving with an upside bias all day against the pound and the latest rally was boosted by the breakout of EUR/USD above 1.0940/50, to the highest in five months; while GBP/USD remains below today’s high and still far from April highs. 

While most forex traders await tomorrow NFP report, the most important event for EUR/GBP in the coming days is the French Election on Sunday. The latest poll from IFOP, shows Macron beating Le Pen by 61% to 39%. The main risk for the euro is a surprise win of Le Pen. That could trigger a sharp decline of the euro. 

IFOP poll: Macron seen beating Le Pen 61/39

EUR/GBP technical levels

To the upside immediate resistance is seen at 0.8500 (daily high/psychological), 0.8510 (Apr 24 high) and 0.8530 (Apr 25 & 26 high). On the flip side, support now could be located at 0.8485 (May 2 high), 0.8450/55 (daily low) and 0.8435 (Mar 3 low).