EUR/GBP clings to strong recovery gains, above 0.88 ahead of May’s Brexit speech
|The EUR/GBP cross once again managed to catch some fresh bids near the 0.8780-75 region and has now moved past previous session's swing highs.
Currently trading around 0.8830 level, just a few pips away from session tops touched in the past hour, the shared currency's relative outperformance on Friday against the British Pound could be attributed to better-than-expected flash Euro-zone PMI prints for September.
• France: Activity indicators remain upbeat in September - ING
Meanwhile, some nervousness ahead of the upcoming Breixt speech by the UK Prime Minister Theresa May kept the Sterling on the back foot and further collaborated to the pair's strong up-move through early European session.
• GBP wary on May’s speech today – Danske Bank
May’s remarks might now act as a key catalyst influencing sentiment surrounding the British Pound and hence, could trigger some fresh bout of volatility across GBP crosses.
• EUR/GBP seen at 0.86 in 6/12-month – Danske Bank
Technical levels to watch
Immediate resistance is pegged near mid-0.8800s, above which the cross is likely to accelerate the up-move towards 0.8875-80 horizontal zone before eventually darting towards the 0.8900 handle.
On the flip side, any retracement from higher levels might now find support near the 0.8800 handle, which is followed by a strong support near the 0.8775-70 region.
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.