EUR/GBP recedes from tops beyond 0.9100

The cross clinched fresh tops beyond the key 0.9100 handle.
Persistent weakness around the Sterling sustains the upside.
Brexit jitters keep weighing on GBP ahead of key vote next week.

Pablo Piovano FXStreet

The offered bias around the British Pound remains the sole driver behind the recent up move of EUR/GBP to fresh tops beyond 0.9100 the figure, area last visited in mid-September 2017.

Brexit concerns have been keeping the Sterling under heavy pressure in past months. This pressure has particularly exacerbated in recent weeks in light of the upcoming key vote in the UK Parliament on PM May’s deal along with the increasing perception by investors that a ‘hard Brexit’ scenario is possible.

In the UK data space, Construction PMI came in a tad below estimates at 52.8 for the month of December. These data contrast with yesterday’s better-than-expected manufacturing PMI.

EUR/GBP key levels

The cross is now gaining 0.44% at 0.9033 and a break above 0.9087 (high Dec.10) would open the door to 0.9110 (2019 high Jan.3) and then 0.9306 (2018 high Aug.29). On the downside, immediate contention emerges at 0.8997 (21-day SMA) would aim for 0.8926 (low Dec.31 2018) and finally 0.8893 (low Dec.25 2018).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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