EUR/GBP recovery faltered near the 200-hour SMA at 0.8581

  • The cross struggles around the 0.8530 area.
  • House of Commons voted to extend Article 50 on Thursday.
  • Another meaningful vote expected next week.

The lack of direction around the Sterling is governing the sentiment in EUR/GBP, which managed to gather some traction following YTD lows in the 0.8470 region (Wednesday).

EUR/GBP volatile after Brexit vote

The British Pound is alternating gains with losses today after investors continue to adjust to yesterday’s vote at the House of Commons on the extension of Article 50.

In this regard, it is worth mentioning that an extension of Article 50 needs a unanimous vote from all EU members.

GBP will remain in centre stage of course, as PM Theresa May has now called for another meaningful vote on her plan to leave the European Union on Wednesday. If her plan passes the vote, May could ask the EU for an extension to end of June, or longer if her plan is rejected (once again).

What to look for around GBP

The Sterling is expected to remain under the microscope in the next days following this week’s votes. In fact, a new meaningful vote is likely on Wednesday, while negotiations between PM May and MPs and between UK and EU officials are also expected to intensify. Further bouts of volatility are therefore on the cards for GBP, opening the door to a potential break of recent tops in the mid-0.8600s as well as YTD lows in the 0.8470 area seen earlier in the week.

EUR/GBP key levels

The cross is losing 0.06% at 0.8530 and a breakout of 0.8574 (high Mar.15) would open the door to 0.8613 (21-day SMA) and finally 0.8675 (high Mar.11). On the flip side, the next support lines up at 0.8471 (2019 low Mar.13) seconded by 0.8402 (monthly low Feb.22 2017) and then 0.8382 (monthly low May 10 2017).

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.


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.


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.


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