EUR/GBP approaches 0.8800 on GBP-selling

EUR/GBP climbs sharply on GBP-weakness.
Brexit woes resurfaced and weigh on the Pound.
All the attention on the Queen’s Speech later today.

Pablo Piovano FXStreet

The Sterling is giving away part of the recent sharp advance in is lifting EUR/GBP to fresh daily highs in the vicinity of 0.8800 the figure.

EUR/GBP focused on Brexit, Queen’s Speech

The European cross is attempting a moderate rebound at the beginning of the week, partially offsetting last week’s 3-cent decline to the 0.8700 neighbourhood, where it seems some support turned up.

The cross has picked up renewed upside traction on Monday in response to the re-emergence of Brexit jitters after EU’s M.Barnier stressed the lack of significant progress in recent talks.

All the attention has now shifted to the Queen’s Speech later today, the resumption of the activity in the UK Parliament and speculations of early elections as well as a potential extension of Article 50 to the end of January 2020.

In the docket, Industrial Production in Euroland came in on a mixed tone, showing that the slowdown in the region stays everything but abated for the time being.

EUR/GBP key levels

The cross is gaining 0.75% at 0.8787 and a drop below 0.8694 (monthly low Oct.11) would expose 0.8667 (78.6% Fibo of the May-August rally) and then 0.8488 (monthly low May 6). On the other hand, the next resistance aligns at 0.8906 (50% Fibo of the May-August rally) followed by 0.8974 (100-day SMA) and finally 0.9007 (55-day SMA).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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