EUR/GBP retreats from fresh 3-year highs

EUR/GBP extended gains into a seventh consecutive day on Tuesday and reached fresh 3-year highs above 0.8700 as the pound continued to underperform despite supportive UK data. 

EUR/GBP climbed to 0.8724, marking its highest level since August 2013 on Tuesday, but then cut intraday gains and slid back below 0.8700. At time of writing, EUR/GBP is trading at 0.8682, virtually unchanged since opening.

EUR/GBP levels to watch

In terms of technical levels, next resistances are seen at 0.8730 (Aug 7 2013 high) and 0.8768 (Aug 1 2013 high) and 0.8800 (psychological level). On the other hand, supports could be faced at 0.8620 (Aug 15 low), 0.8583 (Aug 12 low), 0.8558 (10-day SMA).