- EUR/GBP gains some traction and recovers further from three-week lows.
- The GBP bulls turned cautious and wait for the final round of Brexit negotiations.
- A modest pickup in demand for the euro remained supportive of the uptick.
The EUR/GBP cross refreshed daily tops during the mid-European session, with bulls now looking to build on the momentum further beyond the 0.9100 mark.
Following an early dip to the 0.9060 region, the cross managed to attract some buying interest and built on the previous day's goodish rebound from the 0.9025 region, or three-week lows. The British pound's relative underperformance against its European counterpart could be attributed to cautiousness ahead of the ninth round of Brexit negotiations.
Reports suggest that both the sides remain optimistic that some kind of a deal will be struck ahead of the upcoming EU summit in mid-October. Investors, however, preferred to wait for fresh Brexit updates, which, in turn, prompted some short-covering move around the EUR/GBP cross. Hence, Thursday could be a critical day for the GBP traders.
The EU's chief Brexit negotiator Michel Barnier and his UK counterpart David Frost will update the press on the status of talks on Thursday. Given that this would be the final round of official negotiations, the outcome will be significant for the future EU-UK relationship and should play a key role in influencing the sterling.
The EUR/GBP pair's intraday uptick was further supported by the emergence of some buying around the shared currency, fueled by the ongoing USD pullback from two-month tops. Market participants now look forward to the prelim German consumer inflation figures for some meaningful trading opportunities amid absent relevant macro data from the UK.
Technical levels to watch
|Today last price||0.9108|
|Today Daily Change||0.0020|
|Today Daily Change %||0.22|
|Today daily open||0.9088|
|Previous Daily High||0.9124|
|Previous Daily Low||0.9025|
|Previous Weekly High||0.922|
|Previous Weekly Low||0.9113|
|Previous Monthly High||0.907|
|Previous Monthly Low||0.8909|
|Daily Fibonacci 38.2%||0.9063|
|Daily Fibonacci 61.8%||0.9086|
|Daily Pivot Point S1||0.9034|
|Daily Pivot Point S2||0.8981|
|Daily Pivot Point S3||0.8936|
|Daily Pivot Point R1||0.9133|
|Daily Pivot Point R2||0.9177|
|Daily Pivot Point R3||0.9231|
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.