EUR/GBP: breaks below 0.8800 on cable's advance as Powell's dollar cools off

EUR/GBP has been sent begging on the back of cables advances while otherwise, the dollar is sweeping the floor across most other major currencies this afternoon during Powell's testimony to Congress.

Currently, EUR/GBP is trading at 0.8794, down -0.26% on the day, having posted a daily high at 0.8847 and low at 0.8787. This comes on a move below the 50-hourly SMA and where the pound has been under demand today on  M&A news, (cable was hunting down 1.4000 on the news, Comcast offers 22.1 billion pounds cash for Sky).

Elsewhere, focus has remained with Powell's testimony to Congress today where he is currently engaged in the Q&A session where detail has mostly moved away from issues around interest rates, economic projections and financial stability, where the dollar's advance has cooled down somewhat, (currently easing back to 90.363, from between 89.693 - 90.498 range today).

Fed’s Powell LIVE testimony to Congress: does not see a risk of a recession

European session highlights:

Jens Weidmann, Bundesbank president, was crossing the wires and explained that the ECB monetary policy will remain very accommodative even if QE ends with recent strength of Euro unlikely to alter the policy stance. In data, the economic sentiment indicator for the Eurozone decelerated to 114.1 in February. 

EUR/GBP levels

While the price struggles to get back above 0.8863, the cross remains in familiar ranges and the outlook is neutral within a sideways channel. The market recently reversed just ahead of the 0.8926 mid-January high and the 0.8952 top of the channel.  0.8770 stays in focus to the downside ahead of the December and January lows at 0.8689/87. To the upside, a break of 0.8880 opens risk back towards 0.8920. The 0.9034 October 2017 high ahead of 0.9071/0.9175 61.8% and 78.6% Fibonacci retracements come next.