EUR/GBP refreshes session tops, looks to build on momentum beyond 0.8600 mark

EUR/GBP gained some positive traction on Monday and snapped two days of the losing streak.
COVID-19/Brexit woes continued weighing on the sterling and remained supportive of the move.
A subdued USD demand benefitted the euro, which further provided an additional lift to the cross.

Haresh Menghani FXStreet

The EUR/GBP cross shot to fresh daily tops during the early European session, with bulls making a fresh attempt to build on the momentum beyond the 0.8600 mark.

The cross attracted some buying near the 0.8570 region on the first day of a new trading week and for now, seems to have stalled last week's rejection slide from a short-term descending trend-line hurdle. A combination of factors continued acting as a headwind for the British pound and provided a goodish lift to the EUR/GBP cross.

Investors remain worried that the UK may delay its plans to end restrictions fully in light of the spread of the so-called Delta variant. In the latest development, the UK Prime Minister Boris Johnson will make a statement this Monday and might push back the timeline to end of restrictions in light of the spread of the so-called Delta variant.

The initial plan was to reopen the economy fully on June 21. The delay dampened prospects for a rapid UK economic recovery from the pandemic. This comes amid the EU-UK collision over Norther Ireland protocol, which was seen as another factor that further contributed to the sterling's underperformance against its European counterpart.

In a standoff over the Northern Ireland protocol, the EU warned of swift and firm action if the UK fails to implement its post-Brexit obligations. Adding to this, French President Emmanuel Macron said that NI is not a part of the UK. This, along with a modest pickup in the shared currency, provided an additional lift to the EUR/GBP cross.

The US dollar was seen consolidating Friday's strong move up as investors seemed reluctant to place any aggressive bets ahead of the FOMC meeting on June 15-16. This, in turn, was seen as a key factor that benefitted the euro. The combination of factors allowed the EUR/GBP cross to snap two consecutive days of the losing streak.

Technical levels to watch

EUR/GBP

Overview
Today last price	0.8599
Today Daily Change	0.0020
Today Daily Change %	0.23
Today daily open	0.8579

Trends
Daily SMA20	0.861
Daily SMA50	0.8633
Daily SMA100	0.8652
Daily SMA200	0.8843

Levels
Previous Daily High	0.8606
Previous Daily Low	0.8568
Previous Weekly High	0.8643
Previous Weekly Low	0.8568
Previous Monthly High	0.8711
Previous Monthly Low	0.8561
Daily Fibonacci 38.2%	0.8583
Daily Fibonacci 61.8%	0.8592
Daily Pivot Point S1	0.8563
Daily Pivot Point S2	0.8547
Daily Pivot Point S3	0.8526
Daily Pivot Point R1	0.8601
Daily Pivot Point R2	0.8622
Daily Pivot Point R3	0.8638

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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