EUR/GBP rebounds from 5-month lows near 0.8570 on Brexit deal
|- EUR/GBP loses further ground to the 0.8570 region.
- UK-EU clinched Brexit deal.
- Attention now shifted to UK Parliament vote on Saturday.
The buying pressure around the Sterling has dragged EUR/GBP to fresh multi-month lows in sub-0.8600 levels on Thursday.
EUR/GBP (much) weaker after deal
The European cross continues to suffer the greatly improved sentiment surrounding the British Pound, particularly after UK and EU negotiators reached an agreement earlier in the European morning.
The focus of attention has now gyrated to the 2-day EU Summit in Brussels, which starts today and the UK Parliament, which is due to vote on the recent Brexit deal. In addition, UK PM Boris Johnson is expected to ask his EU peers to rule out another extension of Article 50.
In the UK docket, headline Retail Sales came in flat on a monthly basis during last month, missing consensus. On a brighter note, Core sale expanded more than estimated 0.2% inter-month.
EUR/GBP key levels
The cross is up 0.07% at 0.8633 and faces the next resistance at 0.8807 (61.8% Fibo of the May-August rally) followed by 0.8820 (200-day SMA) and finally 0.8906 (50% Fibo of the May-August rally). On the other hand, a drop below 0.8574 (monthly low Oct.17) would expose 0.8488 (monthly low May 6) and then 0.8474 (2019 low Mar.12).
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