EUR/GBP dives to multi-week lows, below mid-0.9000s


  • EUR/GBP witnessed some selling for the fourth consecutive session on Monday.
  • Positive Brexit-related headlines provided a strong boost to the British pound.
  • Technical selling below the 0.9100 mark further aggravated the bearish pressure.

The buying interest around the British pound picked up pace during the early European session and pushed the EUR/GBP cross to near three-week lows, just below mid-0.9000s.

The cross extended last week's retracement slide from the 0.9215-20 region and witnessed some heavy selling for the fourth consecutive session on the first day of a new trading week. The British pound's relative outperformance against its European counterpart could be solely attributed to reports that both the UK and the EU made key concessions to avoid a no-deal Brexit.

Reports indicated that the two sides remain optimistic that some kind of a deal will be struck before the very important EU summit in mid-October. This comes ahead of the ninth and final round of scheduled Brexit negotiations, starting on Tuesday, which, in turn, was seen as a key factor that prompted a broad-based short-covering move around the British pound.

The downward momentum took along some short-term trading stops near the 0.9100 round-figure mark, which further aggravated the bearish pressure and contributed to the pair's steep decline. Given that oscillators on the daily chart have just started drifting into the negative territory, the EUR/GBP cross remains vulnerable to weaken further amid absent relevant market moving economic releases.

Technical levels to watch

EUR/GBP

Overview
Today last price 0.9046
Today Daily Change -0.0078
Today Daily Change % -0.85
Today daily open 0.9124
 
Trends
Daily SMA20 0.9091
Daily SMA50 0.9054
Daily SMA100 0.9015
Daily SMA200 0.8836
 
Levels
Previous Daily High 0.9168
Previous Daily Low 0.9119
Previous Weekly High 0.922
Previous Weekly Low 0.9113
Previous Monthly High 0.907
Previous Monthly Low 0.8909
Daily Fibonacci 38.2% 0.9138
Daily Fibonacci 61.8% 0.915
Daily Pivot Point S1 0.9105
Daily Pivot Point S2 0.9087
Daily Pivot Point S3 0.9056
Daily Pivot Point R1 0.9155
Daily Pivot Point R2 0.9187
Daily Pivot Point R3 0.9205

 

 

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