EUR/GBP recovers from the dovish ECB meeting and hits 3-day highs

Pound turns volatile ahead of critical Brexit week.
EUR/GBP erases weekly losses, back above the 0.8600 zone.

Matías Salord FXStreet

The EUR/GBP pair accelerated to the upside during the US session on the back of a decline of the pound across the board, that took place during the London fix. After hitting a 3-day high at 0.8634, retreated to the 0.8600 area and as of writing trades back at daily highs.

Price action remains volatile around Pound’s crosses amid Brexit uncertainty and also possibly due to the London fix. Next week crucial votes area expected at the Parliament with no clear results. The latest headline regarding Brexit mentioned that Barnier, the chief EU negotiator, told ambassadors the EU is willing to give to the UK a unilateral exit from the single customs union territory while preserving other elements of the backstop.

With today’s rally, the euro erased the losses that followed the ECB meeting on Thursday. The central bank took a dovish tilt announcing new TLTROs and analysts move further away the expectations of the beginning of the normalization in monetary policy.

The weaker pound offset the negative impact of ECB announcements on the euro. Now EUR/GBP is about to end the week with modest gains.

EUR/GBP

Overview:
    Today Last Price: 0.8615
    Today Daily change: 0.0062 pips
    Today Daily change %: 0.72%
    Today Daily Open: 0.8553
Trends:
    Daily SMA20: 0.8674
    Daily SMA50: 0.878
    Daily SMA100: 0.8833
    Daily SMA200: 0.8856
Levels:
    Previous Daily High: 0.8626
    Previous Daily Low: 0.8536
    Previous Weekly High: 0.8702
    Previous Weekly Low: 0.8529
    Previous Monthly High: 0.8842
    Previous Monthly Low: 0.8529
    Daily Fibonacci 38.2%: 0.857
    Daily Fibonacci 61.8%: 0.8592
    Daily Pivot Point S1: 0.8517
    Daily Pivot Point S2: 0.8482
    Daily Pivot Point S3: 0.8427
    Daily Pivot Point R1: 0.8607
    Daily Pivot Point R2: 0.8662
    Daily Pivot Point R3: 0.8697

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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