EUR/GBP drops from 2-week highs to test multi-month lows on Brexit talk progress

Pound strengthens ahead of crucial Brexit vote.
A statement from the UK government will be delivered later today.

Matías Salord FXStreet

The EUR/GBP pair dropped to test last week multi-month lows on the back of a stronger pound across the board ahead of the “meaningful vote” tomorrow.

Speculations and rumors about the next steps regarding Brexit added support today to the pound that recently gained momentum. A statement from the UK government regarding Tuesday’s motion is expected.

Uncertainty continues to prevail ahead of the vote in the Parliament of May’s revised Brexit deal. Still, the pound managed to rise sharply across the board over the last hours.

The EUR/GBP peaked earlier today at 0.8675, the highest level in two weeks. But since then lost more than a hundred pips. It has recently bottomed at 0.8530, less than five pips above last week lows. It is hovering near the lows, facing bearish pressure.

So far the area around 0.8525/30 is again offering support. A break lower would see the lowest price since May 2017 and could clear the way for a test of 0.8500.

EUR/GBP

Overview:
    Today Last Price: 0.8538
    Today Daily change: -0.0094 pips
    Today Daily change %: -1.09%
    Today Daily Open: 0.8632
Trends:
    Daily SMA20: 0.8668
    Daily SMA50: 0.8773
    Daily SMA100: 0.8832
    Daily SMA200: 0.8855
Levels:
    Previous Daily High: 0.8656
    Previous Daily Low: 0.8547
    Previous Weekly High: 0.8656
    Previous Weekly Low: 0.8536
    Previous Monthly High: 0.8842
    Previous Monthly Low: 0.8529
    Daily Fibonacci 38.2%: 0.8614
    Daily Fibonacci 61.8%: 0.8589
    Daily Pivot Point S1: 0.8567
    Daily Pivot Point S2: 0.8503
    Daily Pivot Point S3: 0.8458
    Daily Pivot Point R1: 0.8676
    Daily Pivot Point R2: 0.872
    Daily Pivot Point R3: 0.8785

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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