EUR/GBP drops below 0.90 handle

Omkar Godbole FXStreet Contributor

Short squeeze in GBP gathered pace on falling prospects of ‘Hard Brexit’, pushing EUR/GBP to a session low of 0.8967 levels.

GBP soars across the board

The British Pound is having a good time out there after a long time. The selling interest in the British Pound ran out of steam after UK PM May accepted a Parliamenty vote over her Brexit plans. Moreover, markets believe that would help May secure better deals while negotiating with her EU counterparts.

Meanwhile, EUR/USD pair dropped as well after having breached a key support level of 1.11. Consequently, the EUR/GBP pair suffered losses. The cross was last seen trading around 5-DMA level of 0.8989 levels.

EUR/GBP Technical Levels

A move back above 0.90 handle would open doors for a revisit to Asian session high of 0.9128, beyond which Friday’s high of 0.9225 levels. On the other hand, a breakdown of support at 0.8969 (hourly 100-MA) could yield a much deeper retracement to 0.89 (zero figure) and 0.8850 (hourly 200-MA) levels.

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	High
1H	Bearish	Oversold	High
4H	Bearish	Overbought	Low
1D	Bearish	Oversold	High
1W	Bullish	Neutral	Low
Updated Oct 11, 03:15 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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