EUR/GBP looking for direction below 0.9000
|- EUR/GBP uptrend from 0.8860 lows stalls below 0.9000.
- The pound remains weighed by Brexit uncertainty and BoE dovishness.
- The pair faces resistance at 0.9013 and 0.9025/28 – Credit Suisse.
The euro seems unable to break resistance at the 0.9000 area and remains practically unchanged on Monday, moving around 0.8970 without a clear direction, after last week’s uptrend from 0.8860.
Brexit uncertainty remains weighing on the GBP
With the negotiations of a trade agreement with the EU on a deadlock and the clock ticking towards the end of the transition period, investors remain wary about the pound, which is losing ground against its main peers on Monday. The market eyes the key meeting on Monday next week, with the possibility of a no-deal exit from the Union growing more likely by the day.
Furthermore, the Bank of England is expected to announce a plan to step up its quantitative easing program by at least 100 billion pounds on Thursday, after its monetary policy meeting, which is adding selling pressure on the GBP.
EUR/GBP: Key resistance levels at 0.9013 and 0.9025/28 – Credit Suisse
The FX Analysis team at Credit Suisse expect the EUR/GBP to continue pushing higher, although the pair is facing important resistance levels right above 0.9000, “A clear break above the top of the recent ‘outside day’ high at 0.9013 remains needed to add weight to our view an important turn higher is indeed underway again with resistance then seen at 0.9025/28 initially, then the recent high and ‘measured base objective’ at 0.9056/57. Whilst a fresh rejection from here should be allowed for, above in due course can see resistance next at the 50% retracement of the March/April fall at 0.9086 and eventually at the 61.8% retracement at 0.9184.”
EUR/GBP key levels to watch
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