EUR/GBP moves higher, looks to challenge 0.8800

• The cross bounced off the 0.8720 area on Thursday.
• GBP-selling gives oxygen to the upside.
• UK’s PMI came in at 54.5.

The recent and softer tone around the Sterling has allowed EUR/GBP to clinch session tops in the 0.8780 area on Friday, extending the rebound from recent lows in the 0.8720 zone seen earlier in the week.

EUR/GBP bid after PMI

The European cross gained some extra traction UK’s Construction PMI dropped to 50.2 in January, below initial estimates and down from December’s 52.2. The British Pound eased further in the wake of the release and trades in the area of daily lows vs. both the buck and the single currency.

In addition, Brexit headlines and the lack of some solid progress in that regard keep pouring cold water over any meaningful bullish attempt in GBP and thus stays supportive of further upside in the cross.

Later in the session, US non-farm payrolls should drive investors’ attention, with consensus hovering over 180K for the month of January.

EUR/GBP key levels

The cross is now up 0.15% at 0.8783 facing the next up barrier at 0.8809 (21-day sma) seconded by 0.8833 (high Jan.30) and finally 0.8854 (200-day sma). On the other hand, a breach of 0.8717 (low Feb.1) would expose 0.8687 (low Jan.25) and then 0.8646 (low Jun.8).