EUR/GBP surges to fresh monthly highs
|The British Pound remained well offered across the board, lifting the EUR/GBP cross to the highest level since August 19.
Currently trading at a 5-week high around 0.8665-60 region, the cross is now headed for the third consecutive week of strong gains. Friday's comments from British Foreign Secretary Boris Johnson provided hints at the possible Brexit timing. Johnson said that UK would trigger Article 50 by the early part of next year and would officially kick-start the process of ending its association with the European Union, which triggered a fresh bout of selling pressure around the British Pound.
Meanwhile, bid tone around the EUR/USD major, despite of mixed readings from the preliminary release of Euro-zone PMI prints for the month of September, was seen extending further support to the EUR/GBP pair's strong up-move on Friday.
Technical levels to watch
From current levels, 0.8680-85 region seems to act as immediate resistance, which if conquered might trigger a fresh leg of appreciating move that is likely to lift the cross beyond 0.9700 handle towards testing August swing high resistance near 0.8725 level.
On the flip side, 0.8630 now seems to protect immediate downside below which the cross might drop back below 0.8600 handle and retest previous strong resistance, now turned support, near 0.8585 area.
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