EUR/GBP clings to gains above 0.8700 handle ahead of Draghi
|The EUR/GBP cross maintained its strong bid tone and is now sustaining its move to the highest level since mid-August.
Currently holding above 0.8700 handle, the cross is now within striking distance of a multi-month high level of 0.8725 touched in the post-Brexit regime during August.
An offered tone around the British Pound, amid renewed worries over Brexit, triggered the initial leg of up-move. Adding to this, upbeat German IFO business climate provided an additional boost to the shared currency and helped the EUR/GBP cross to extend its near-term bullish momentum to nearly 6-week high.
Focus now shifts to ECB President Mario Draghi's testimony before the Committee on Economic and Monetary Affairs of European Parliament later today, which might provide fresh impetus for the EUR/GBP cross traders.
Technical levels to watch
A sustained move above multi-month high resistance near 0.8725 area is likely to trigger a fresh leg of up-move, lifting the cross immediately towards July 2013 highs resistance near 0.8770 region before darting towards reclaiming 0.8800 round figure mark.
On the flip side, weakness below 0.8700 handle now seems to be limited and is likely to be bought into near 0.8670 horizontal area. Only a decisive break back below 0.8670 support might negate near-term bullish expectations and trigger a short-term corrective move.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.