EUR/GBP has rallied hard on the back of the Brexit weekend news just a couple of days away from May speaking this week where she is expected to talk of hard Brexit conditions.
The three-month resistance line at 0.8772 was broken last week and has just broken above 0.8778 level that now opens scope toward 0.9000. If indeed the Telegraph has reported accurately in respect to what to expect from May's speech this week, the pound could be in for a long period on the back-foot until heads turn to the European political uncertainties and potential banking crisis while the dollar could start to attract safe-haven flows again regardless of Trump's fiscal policies or the Federal Reserve and US economy performance - if it is more of a dollar story the cross might have a hard time moving in one direction. Meanwhile cable is back above the 1.2000 handle on profit taking.
EUR/GBP levels
EUR/GBP has broken key technical levels to the upside over the course of the last several trading sessions and 0.9000 is in focus while holding above the 0.88 handle. 0.8780 to the downside will close the bullish opening gap and guards the 0.87 round figure and 0.8664 (29th Dec spike highs). "We maintain a longer term negative bias - we look for a retest of the 200 day ma at 0.8467 and the recent low at 0.8304. "Failure here will trigger another leg lower to the 0.8170 50% retracement."
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