EUR/GBP clings to gains near 6-week tops, moves little post-ECB decision


  • The emergence of some fresh selling around the GBP provided a strong lift to EUR/GBP.
  • Reports indicate that the EU will threaten legal action against Britain over breaches of the treaty.
  • The ECB leaves interest rates unchanged and does little to provide any meaningful impetus.

The EUR/GBP cross finally broke out of its European session consolidation phase and shot to fresh six-week tops, around the 0.9135 region in the last hour.

The latest leg of a sudden spike over the past hour or so was led by the emergence of some fresh selling around the British pound. The Times reported the European Union will threaten legal action against Britain over breaches of the Brexit withdrawal treaty, which, in turn, took its toll on the sterling.

On the other hand, the shared currency remained well supported by the overnight report that the European Central Bank will adopt a more optimistic tone on its economic outlook. The bullish tone remained uninterrupted after the ECB announced its policy decision and left benchmark interest rates unchanged.

The decision was in line with market expectations and hence, did little to influence. Investors, however, will monitor any comments on the euro's recent appreciation and the ECB's new economic projections. This will be followed by the post-meeting press conference, where comments by the ECB President Christian Lagarde might provide some meaningful impetus.

Technical levels to watch

EUR/GBP

Overview
Today last price 0.9125
Today Daily Change 0.0047
Today Daily Change % 0.52
Today daily open 0.9078
 
Trends
Daily SMA20 0.8985
Daily SMA50 0.9017
Daily SMA100 0.8962
Daily SMA200 0.8792
 
Levels
Previous Daily High 0.9131
Previous Daily Low 0.9065
Previous Weekly High 0.8967
Previous Weekly Low 0.8866
Previous Monthly High 0.907
Previous Monthly Low 0.8909
Daily Fibonacci 38.2% 0.9106
Daily Fibonacci 61.8% 0.909
Daily Pivot Point S1 0.9052
Daily Pivot Point S2 0.9026
Daily Pivot Point S3 0.8986
Daily Pivot Point R1 0.9118
Daily Pivot Point R2 0.9157
Daily Pivot Point R3 0.9183

 

 

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