EUR/GBP remains bid near 0.8550, focused on ‘indicative votes’
|- The cross is recovering ground lost and trades in the mid-0.8500s.
- EUR/GBP appears supported near 0.8520 this week.
- Attention is on upcoming Brexit ‘indicative votes’.
The now better tone in the riskier assets is helping EUR/GBP to keep the buying bias above 0.8500 the figure.
EUR/GBP now focused on Brexit votes
The European cross is navigating the lower bound of the weekly range above 0.8500 the figure for the time being, always on the back of rising speculations regarding the upcoming ‘indicative votes’.
In fact, the House of Commons will vote tonight (and possibly next week) on alternatives to the Brexit plan at a time when PM Theresa May faces increasing pressures to leave Number 10. In the meantime, a third meaningful vote has not yet been ruled out for later this week.
Data wise in the UK, house prices tracked by the Nationwide index are due tomorrow ahead of Q4 GDP figures and several financial gauges from the BoE, all expected on Friday.
What to look for around GBP
Upcoming votes on alternative ideas to the UK-EU divorce put forward by MPs will grab all the attention in coming hours as well as a potential third meaningful vote on May’s plan (MV3) and rumours of the PM stepping down. On another front, there is no news from the Bank of England following last week’s meeting, although the cautious stance remains well in place in light of the ongoing Brexit negotiations.
EUR/GBP key levels
The cross is gaining 0.12% at 0.8540 facing the next hurdle at 0.8570 (21-day SMA) seconded by 0.8689 (55-day SMA) and finally 0.8722 (high Mar.22). On the flip side, the breach of 0.8518 (low Mar.26) would expose 0.8471 (2019 low Mar.13) and then 0.8402 (monthly low Feb.22 2017).
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