EUR/GBP: capped through 100-D SMA, anchored by EUR/USD

• EUR/GBP: bulls making hard work of the upside from here.
• EUR/GBP: anchored with the euro to lowest levels since Dec 2017.

EUR/GBP is struggling to get through the 100D SMA with any conviction and has hit a brick wall at the start of the week, dropping from 0.8842 recent highs. 
Currently, EUR/GBP is trading at 0.8792, down -0.55% on the day, having posted a daily high at 0.8842 and low at 0.8779.

EUR/GBP was weighed down by the euro falling to the lowest levels since December last year, a touch below the 1.19 handle. However, the markets are generally quiet today and consolidating Friday's nonfarm payrolls report while looking ahead this week to the BoE, UK manufacturing output, US CPI and jobless claims. 

Key events ahead

There is virtually no chance of BoE hike this meeting around, odds that are severely down compared to an 80% chance back in April before all of the UK data disappointments. The euro leg of the cross had played catch up on the bid due to this but that rally is now stalling.

EUR/GBP levels

Analysts at Commerzbank noted that EUR/GBP’s intraday Elliott wave counts are positive and rallies look set to extend to the 200-day ma at 0.8877. "What is not clear at this juncture is whether or not the market has enough impetus to rally above its 200-day ma. While capped here we will continue to target 0.8526, the 78.6% retracement of the move from 2017. En route is the 0.8620 recent low and a support line at 0.8573."