EUR/GBP regains 0.8800 and above, session tops
|- The cross moves higher on GBP-selling, clinches the 0.88 handle.
- UK Retail Sales disappointed expectations in December.
- PM T.May starts her cross-party talks on a ‘Plan B” for Brexit.
The now selling bias around the Sterling is motivating EUR/GBP to inch higher and retake the critical 0.880 handle and above.
EUR/GBP supported near 0.8760
The European cross is now picking up extra pace on the back of the current knee-jerk in the demand for the British Pound, all in the wake of the publication of UK Retail Sales.
In fact, GBP is on the defensive today after headline Retail Sales contracted at a monthly 0.9% during the last month of 2018 and expanded 3.0% from a year earlier. Additionally, Core sales also disappointed estimates, contracting 1.3% inter-month and rising at an annualized 2.6%.
In the meantime, GBP stays in centre stage, as PM Theresa May is expected to start her cross-party talks in order to come up with an alternative Brexit plan, which will be discussed by Parliament on January 29. It is worth recalling that May’s Brexit deal was rejected by the House of Commons by a large margin, although the PM has survived the J.Corbyn-led no-confidence vote afterwards.
EUR/GBP key levels
The cross is now gaining 0.52% at 0.8815 and a break above 0.8860 (200-day SMA) would open the door to 0.8901 (55-day SMA) and then 0.8985 (high Jan.15). On the other hand, the next support is located at 0.8763 (2019 low Jan.17) seconded by 0.8723 (monthly low Oct.10 2018) and finally 0.8655 (monthly low Nov.13 2018).
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.