EUR/GBP stable around £0.8880 ahead of Merkel-May Summit

• The EUR/GBP trades in a fairly narrow range around £0.8880. 
• Rising US stocks and no new worries about Brexit support the current stability.
• A meeting between UK PM Theresa May and her German counterpart Angela Merkel is due on Friday in Berlin.

The EUR/GBP is marginally lower on the day, trading in the middle between the daily low of £0.8858 to the daily high of £0.8901. Markets have calmed down after a turbulent Wednesday, which eventually saw the US Dollar drop sharply. The Euro and the Pound traded in tandem against the greenback. 

Worries about Brexit have receded as well. A speech by British Foreign Secretary Boris Johnson on Wednesday called to unite around leaving the EU and put the topic firmly on the table. Today, there was some speculation about a softening position on Brexit by the EU, but this did not have an impact. 

Brexit returns to the forefront on Friday as the British PM Theresa May flies to Berlin to meet German Chancellor Angela Merkel. Brexit is due to top the agenda and the headlines can move the cross.

In addition, the economic calendar features a top-tier UK release: the retail sales report for January. A rise of 0.5% is expected after a sharp drop of 1.5% in December. A speech by European Central Bank member Benoit Cœuré tops the agenda for the euro-zone.

EUR/GBP Technical Levels

The pair may find support at £0.8858, the low point for the day. A break below this level opens the door to £0.8732 (Feb. 8 low) and then to £0.8670 (Jan. 25 and also Dec. 8 low). 

On the upside, £0.8920 which was the high point on January 12th is notable. A move above this level opens the door to £0.8981 (Nov. 28 high) and then to £0.9032 (Oct. 12 high).