EUR/GBP clinches fresh 2018 highs above 0.9000
- The European cross moves higher and breaks above 0.90.
- Increasing weakness around the Sterling is sustaining the move.
- The cross trades in levels last seen in October/November 2017.
Increasing selling pressure around the British Pound is now lifting EUR/GBP beyond the critical 0.9000 the figure or fresh YTD peaks.
EUR/GBP higher on GBP selling
The European cross has accelerated the upside today, advancing for the third session in a row to levels last seen in October/November 2017 above the psychological 0.9000 milestone.
The persistent and strong selling bias hitting the Sterling as of late remains the exclusive driver of the upside momentum in the cross, all amidst rising speculations on the likelihood of a ‘hard Brexit’ outcome.
In the meantime, investors continue to factor in the probability of a ‘no deal’ in light of the lacklustre progress (if any at all) in the EU-UK talks since the start of the negotiations. It is worth recalling that the next deadline is on September 20, where talks are expected to continue (or not).
EUR/GBP key levels
The cross is now losing 0.58% at 0.9014 and a breakout of 0.9034 (high Oct.12 2017) would expose 0.9100 (psychological level) and finally 0.9307 (2017 high Aug.29). On the downside, the initial support emerges at 0.8827 (200-day sma) seconded by 0.8841 (high Jun.7) and then 0.8853 (low Aug.3).
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.
