- EUR/GBP witnessed heavy selling on Wednesday amid a strong pickup in demand for the sterling.
- The incoming Brexit-related headlines continue to influence the sentiment surrounding the GBP.
- A modest uptick in the shared currency did little to lend support or ease the intraday selling bias.
The EUR/GBP cross added to its intraday losses and refreshed daily lows, around the 0.9065 region in the last hour.
Following a brief consolidation through the Asian session on Wednesday, the cross witnessed some aggressive selling amid a strong pickup in demand for the British pound. The incoming Brexit-related headlines raised prospects for the resumption of Brexit talks, which, in turn, prompted traders to unwinding their GBP bearish bets.
The EU's chief Brexit negotiator, Michel Barnier said that a Brexit agreement is within reach and showed readiness to discuss all subjects based on the legal text. Barnier also said that level playing field remains a fundamental concern and that there will be no trade deal without a fair solution for fisheries.
Separately, EU vice president of interinstitutional relations, Maroš Šefčovič, said that there is no time to lose and the goal is still to reach a deal. Meanwhile, the government spokesperson confirmed that there will be more Brexit talks again later this Wednesday, which will continue to influence the sentiment surrounding the sterling.
On the other hand, the shared currency was being supported by the prevalent selling bias surrounding the US dollar, fueled by the latest optimism about additional US fiscal stimulus measures. The EUR/GBP cross, however, failed to gain any respite, with the GBP price dynamics turning out to be an exclusive driver of the intraday momentum.
The EUR/GBP cross, for now, seems to have snapped four consecutive days of the winning streak and erased gains recorded over the past two days. That said, it will still be prudent to wait for some strong follow-through selling before confirming that the cross might have topped out and positioning for any further depreciating move.
Technical levels to watch
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