EUR/GBP loses the grip, now targets 0.8800

• EUR/GBP extends the correction lower and looks to 0.8800.
• UK 10-year yields dropped to levels last seen in October 2016.
• Brexit uncertainty keeps dominating the UK landscape.

Alternating trends in the single currency and the British Pound are prompting EUR/GBP to recede a tad from recent tops in levels just shy of 0.8850.

EUR/GBP looks to yields, risk trends, Brexit

The European cross is now extending the weekly sideline theme below the 0.8850 mark, always looking to the US-China trade dispute as the exclusive driver behind the price action in the global markets.

The UK money markets are following the broader downbeat sentiment, where yields of the 10-year Gilt have dropped and are now seeing a mild rebound from sub-0.89% levels, area last seen in October 2016.

Still in the UK, former London mayor and a firm candidate to succeed Theresa May in Number 10 Boris Jonhson was ordered to appear in court after being accused of misconduct in the run-up for the 2016 referendum.

EUR/GBP key levels

The cross is gaining 0.01% at 0.8815 and a break above 0.8850 (monthly high May 24) would expose 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3). On the flip side, the next down barrier aligns at 0.8785 (200-day SMA) seconded by 0.8724 (low May 21) and then 0.8643 (55-day SMA).