EUR/GBP retreats from highs, keeps the 0.8900 handle

The European cross remains bid above the 0.8900 handle.
Attention remains on the Sterling and Brexit headlines.
The House of Commons will vote on the Brexit deal on December 11.

Pablo Piovano FXStreet

EUR/GBP is trading on a firm note at the end of the week, reverting two consecutive sessions with losses albeit still above the 0.8900 barrier.

EUR/GBP looks to Brexit developments

The European cross is extending the consolidation in the top of the range prevailing since mid-November in levels close to the critical barrier at 0.8900 the figure.

As always, volatility around the Brexit negotiations plus omnipresent effervescence in the Italian political arena keep dictating the sentiment around the cross, while investors have shifted their focus on the crucial vote of PM May’s deal in the House of Commons next Tuesday.

Earlier in the session, German Industrial Production contracted more than initially estimated during October, while final Q3 GDP figures showed the economy in the region expanded 0.2% QoQ and 1.6% YoY.

EUR/GBP key levels

The cross is now gaining 0.07% at 0.8907 and a break above 0.8948 (high Dec.4) would open the door to 0.9001 (high Sep.24) and then 0.9032 (high Aug.9). On the downside, immediate contention emerges at 0.8890 (low Dec.4) would aim for 0.8854 (21-day SMA) and finally 0.8836 (200-day SMA).

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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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