EUR/GBP rebounds above 0.86 on concerns over MPs not backing May's Brexit deal
|- Attorney General Cox's legal advice puts PM May's deal in jeopardy.
- US Dollar Index recovers above 97.20.
- Upbeat data from the UK failed to help GBP ahead of the meaningful vote.
The EUR/GBP pair, which lost nearly 150 pips on Monday after British Prime Minister said that she secured legally binding changes to the Irish backstop following a last-minute meeting with the European Commission President Juncker, recovered almost all of yesterday's losses with Attorney General Cox noting that the legal risk remained unchanged that UK would have no lawful means of exiting the arrangement in the PM's renegotiated deal. As of writing, the pair was up 0.9% on a daily basis at 0.8625.
"However, the legal risk remains unchanged that if through no such demonstrable failure of either party, but simply because of intractable differences, that situation does arise, the United Kingdom would have, at least while the fundamental circumstances remained the same, no internationally lawful means of exiting the Protocol's arrangements, save by agreement," AG Cox said in a written statement.
Meanwhile, earlier in the day, the data published by the UK's Office for National Statistics showed that the industrial production rose by 0.6% in January following December's 0.5% contraction and the GBP expanded by 0.5% on a monthly basis in January to beat the market expectation of 0.2%. Nevertheless, the data failed to help the British pound and investors are now waiting for the critical meaningful vote on PM May's tweaked Brexit deal, which is expected to take place at 19 GMT.
Key technical levels
EUR/GBP
Trends:Daily SMA20: 0.8658
Daily SMA50: 0.8764
Daily SMA100: 0.8829
Daily SMA200: 0.8854
Levels:
Previous Daily High: 0.8678
Previous Daily Low: 0.8533
Previous Weekly High: 0.8656
Previous Weekly Low: 0.8536
Previous Monthly High: 0.8842
Previous Monthly Low: 0.8529
Daily Fibonacci 38.2%: 0.8588
Daily Fibonacci 61.8%: 0.8622
Daily Pivot Point S1: 0.8497
Daily Pivot Point S2: 0.8443
Daily Pivot Point S3: 0.8353
Daily Pivot Point R1: 0.8641
Daily Pivot Point R2: 0.8731
Daily Pivot Point R3: 0.8785
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.