EUR/GBP pushes higher beyond 0.8700 on GBP-selling


  • Extra downside in the Sterling leads the up move in the cross.
  • EU Tusk will meet UK May in Egypt although a deal is ruled out.
  • EMU CPI matched estimates. German IFO came in below consensus.

The selling bias around the British Pound is now picking up pace and is sponsoring the up move in EUR/GBP to tops beyond 0.8700 the figure.

EUR/GBP focused on Brexit and Brexit alone

The renewed uncertainty around Brexit have relegated the recent optimism on a potential deal between the UK and the EU in the next weeks, forcing the Sterling to shed part of its gains and thus lending some wings to the European cross.

Always around Brexit, EU D.Tusk is expected to meet PM T.May in Sharm El-Sheikh at the EU-Arab Summit over the weekend, although EU officials have already ruled out any chances to seal an agreement.

In the data space, German IFO Survey extended the downtrend in February, coming in below expectations in all of its components and at the same time adding to the sour sentiment in the euro region. Further data saw inflation figures in the broader euro area matching the preliminary prints for the month of January.

Later in the day, ECB’s Mario Draghi is due to speak.

What to look for around GBP

The Sterling is expected to remain under increasing pressure as the clock continues to tick and there is no progress on the horizon (or even any hint of it) in the UK-EU divorce negotiations. So far, consensus among market participants seems to lean to an extension of Article 50 or a deal at the very last minute as it appears to be no support for a ‘no deal’ scenario. In the meantime, the Irish backstop stays the critical issue to be resolved and the main obstacle for further progress in negotiations. This, in combination with poor UK fundamentals should be enough to keep occasional rallies in GBP somehow capped.

EUR/GBP key levels

The cross is gaining 0.26% at 0.8710 and a breakout of 0.8741 (21-day SMA) would aim for 0.8840 (high Feb.14) and finally 0.8858 (200-day SMA). On the flip side, the next support aligns at 0.8666 (low Feb.21) seconded by 0.8655 (low Nov.13 2018) and then 0.8616 (2019 low Jan.25).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD falls to two-week lows as trade wars escalate, strong US data

EUR/USD is hovering above 1.1150, the lowest in two weeks as Chinese media reported that the country is no longer interested in talks with the US after the latter blacklisted Huawei. US Consumer Sentiment beat with 102.4.

EUR/USD News

GBP/USD hits lowest since January as cross-party Brexit talks collapse

GBP/USD hits the lowest levels since January, below 1.2750. The UK's Labour Party said there is no point in talking with a government about to collapse. UK PM May is set to step down in June.

GBP/USD News

USD/JPY fails again to break 110.00, turns flat for the day and the week

The USD/JPY pair found support around the 109.50 area and bounced to the upside, erasing losses.

USD/JPY News

Gold breaks to the downside hits 2-week lows near $1275

Gold prices accelerated to the downside today and particularly after the beginning of the American session, resuming the bearish move. The yellow metal is falling for the fourth day in-a-row and it is down almost $30 from the weekly high. 

Gold News

Bitcoin price update: BTC reclaims $7,000, recovery stalled

Bitcoin (BTC) has recovered from a scary flash crash that took it all the way down from $7,800 to as low as $6,512. The first digital coin lost about 16% of its value in a matter of hour with no particular reason .

Read more

Majors

Cryptocurrencies

Signatures