EUR/GBP flirts with session lows, around 0.8925 region


  • EUR/GBP witnessed some fresh selling on Friday and reversed the overnight positive move.
  • Not so positive Brexit developments raised hopes for an extension of the transition period.
  • Dovish ECB expectations weighed on the euro and further contributed to the selling bias.

The EUR/GBP cross witnessed some selling during the first half of the European trading session and dropped to fresh daily lows, around the 0.8925 region in the last hour.

Following an early uptick to the 0.8960 region, the cross met with some fresh supply on the last trading day of the week and has eroded a major part of the previous day's positive move. The British pound was supported by hopes for an extension to the Brexit transition period and got an additional boost following the release of stronger-than-expected UK retail sales figures.

It is worth recalling that Brexit talks were suspended on Thursday after a member of the EU team was tested positive for COVID-19. That said, the EU negotiating team briefed envoys of the 27 member states that Brexit talks remain unresolved on three main issues – level playing field, fisheries and state-aid rules – though did little to prompt any selling around the sterling.

On the other hand, the shared currency remained a relative underperformer amid expectations that the European Central Bank will announce additional monetary stimulus in December. This, in turn, contributed to the EUR/GBP pair's intraday slide, which marks the third day of a negative move in the previous five.

It will now be interesting to see if the EUR/GBP cross can find any support at lower levels or breaks through the 0.8900 round-figure mark, setting the stage for a further near-term depreciating move. Nevertheless, the incoming Brexit-related headlines will continue to play a key role in influencing the pair’s near-term momentum.

Technical levels to watch

EUR/GBP

Overview
Today last price 0.8926
Today Daily Change -0.0023
Today Daily Change % -0.26
Today daily open 0.8949
 
Trends
Daily SMA20 0.8995
Daily SMA50 0.9066
Daily SMA100 0.9044
Daily SMA200 0.8943
 
Levels
Previous Daily High 0.8964
Previous Daily Low 0.8924
Previous Weekly High 0.9048
Previous Weekly Low 0.8861
Previous Monthly High 0.9162
Previous Monthly Low 0.8984
Daily Fibonacci 38.2% 0.8949
Daily Fibonacci 61.8% 0.8939
Daily Pivot Point S1 0.8927
Daily Pivot Point S2 0.8906
Daily Pivot Point S3 0.8888
Daily Pivot Point R1 0.8967
Daily Pivot Point R2 0.8985
Daily Pivot Point R3 0.9006

 

 

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