EUR/GBP surges through 0.90 mark, hits one-month tops on renewed Brexit worries
|After an initial dip to mid-0.8900s, the EUR/GBP cross regained traction and surged back through the key 0.90 psychological mark for the first time since Sept. 14.
The British Pound got hammered down across the board amid renewed Brexit concerns following the latest remarks by the EU's chief negotiator Michel Barnier and UK's Brexit minister David Davis.
During a joint Brexit press conference, Barnier said that talks have reached a deadlock, while Davis was noted saying that the UK government is planning for all possible scenarios and has to be ready for the alternative, if good deal is not possible.
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Meanwhile, possibilities of some big stops being triggered, on a sustained break through 0.8990 supply zone, also seems to have collaborated to the pair's sharp upsurge over the past couple of hours.
In absence of any major market moving economic releases, Brexit headlines is turning out be an exclusive driver of the pair's strong up-move on Thursday.
Technical levels to watch
A follow through momentum might now confront resistance near the 0.9040-50 region, above which the cross could aim towards reclaiming the 0.9100 handle.
On the flip side, 0.9000-0.8990 area now becomes immediate support to defend, which if broken might drag the cross back towards 0.8930 strong horizontal support.
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