EUR/GBP bounces off lows, regains 0.8700 and beyond

The cross recovers some ground after Tuesday’s sell off.
UK PM May expected to meet EU Juncker later in the day.
CBI Industrial Trends coming up in the docket.

Pablo Piovano FXStreet

The now offered bias around the British Pound is sponsoring the ongoing rebound in EUR/GBP to the 0.8700 region.

EUR/GBP focused on Brexit developments

After bottoming out in fresh 3-week lows near 0.8670, the European cross managed to get back some buying interest and regain the 0.8700 milestone today.

Alternating optimism over the probable Brexit outcome continues to dictate the sentiment around the Sterling, while all eyes are expected to be on the upcoming meeting between PM May and EU J.C.Juncker in Brussels, where the Irish backstop will be in the centre of the talks.

Latest news cited EU diplomats saying the UK needs to clinch a deal by mid-March in order to be discussed (approved) at the EU Summit on March 21-22.

Later in the UK docket, the CBI Industrial Trends Orders will be the sole release in the calendar.

EUR/GBP key levels

The cross is gaining 0.29% at 0.8704 and a breakout of 0.8740 (21-day SMA) would aim for 0.8752 (10-day SMA) and finally 0.8840 (high Feb.14). On the flip side, the next support aligns at 0.8672 (low Feb.19) seconded by 0.8655 (low Nov.13 2018) and then 0.8616 (2019 low Jan.25).

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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