EUR/GBP rebound toward 0.9000 after EU and UK reach Brexit deal

The European Union and the United Kingdom reached a trade deal.
Pound retreats after the announcement, EUR/GBP rises to 0.9000.

Matías Salord FXStreet

The EUR/GBP pair rose from three-week lows around 0.8950 to 0.9007, trimming daily losses after the announcement that the United Kingdom reached a deal with the European Union after months and months of talks.

The pound so far did not rally and pulled back, probably on a “buy the rumor, sell the fact” event. Now the UK Parliament and European nations have to ratify the deal. UK PM Johnson said there will be a vote on the EU trade deal on December 30.

Markets are about to end the week relatively quiet even after the Brexit story. The pound is still among the top performers but off highs. So far, the announcement did not trigger more gains. Monday’s opening could include gaps.

From a technical perspective, EUR/GBP bias is downward, particularly if it holds under 0.9000. Earlier during the week, the pair reached levels above 0.9200 before reversing sharply. A decline below 0.8940 would expose the critical barrier at 0.8860 that capped the downside in September and November.

Technical levels

EUR/GBP

Overview
Today last price	0.8997
Today Daily Change	-0.0033
Today Daily Change %	-0.37
Today daily open	0.903

Trends
Daily SMA20	0.9046
Daily SMA50	0.9017
Daily SMA100	0.9039
Daily SMA200	0.8987

Levels
Previous Daily High	0.911
Previous Daily Low	0.9001
Previous Weekly High	0.9157
Previous Weekly Low	0.8983
Previous Monthly High	0.9069
Previous Monthly Low	0.8861
Daily Fibonacci 38.2%	0.9043
Daily Fibonacci 61.8%	0.9069
Daily Pivot Point S1	0.8984
Daily Pivot Point S2	0.8938
Daily Pivot Point S3	0.8875
Daily Pivot Point R1	0.9093
Daily Pivot Point R2	0.9156
Daily Pivot Point R3	0.9202

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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