EUR/GBP retreats further from multi-month tops, slide below mid-0.9200s

  • EUR/GBP edged lower on Monday and snapped five consecutive days of the winning streak.
  • Receding fears of a no-deal Brexit prompted some short-covering move around the sterling.
  • The post-ECB buying around the shared currency should help limit any meaningful downfall.

The EUR/GBP cross maintained its offered tone through the early European session and was last seen hovering near the lower end of its daily trading range, around the 0.9230-25 region.

The cross witnessed some long-unwinding trade on the first day of a new trading week and retreated further from six-month tops set on Friday. The EUR/GBP cross, for now, seems to have snapped five consecutive days of the winning streak and the pullback was sponsored by the British pound's relative outperformance against its European counterpart.

The sterling witnessed some short-covering move amid reports Alliance parties could table an amendment aimed to block the so-called UK Internal Market Bill from proceeding. Ex-Prime Ministers Tony Blair and Sir John Major have urged MPs to reject the government's attempt to override parts of Withdrawal Agreement, which helped eased concerns about a no-deal Brexit.

On the other hand, the shared currency remained well supported by last week's not so dovish (rather hawkish) ECB monetary policy update. Adding to this, the ECB President Christine Lagarde said that there was no need to over-react to the euro's recent appreciation. This, in turn, might help limit any deeper losses for the EUR/GBP cross, at least for now.

In the absence of any major market-moving economic releases, either from the UK or the Eurozone, Monday's key focus will remain on a debate/vote on the UK's Internal Market Bill in the House of Commons. The incoming headlines will play a key role in influencing the GBP price dynamics and produce some meaningful trading opportunities.

Technical levels to watch


Today last price 0.9228
Today Daily Change -0.0030
Today Daily Change % -0.32
Today daily open 0.9258
Daily SMA20 0.9005
Daily SMA50 0.9026
Daily SMA100 0.8972
Daily SMA200 0.88
Previous Daily High 0.9292
Previous Daily Low 0.921
Previous Weekly High 0.9292
Previous Weekly Low 0.8929
Previous Monthly High 0.907
Previous Monthly Low 0.8909
Daily Fibonacci 38.2% 0.9261
Daily Fibonacci 61.8% 0.9241
Daily Pivot Point S1 0.9215
Daily Pivot Point S2 0.9172
Daily Pivot Point S3 0.9134
Daily Pivot Point R1 0.9296
Daily Pivot Point R2 0.9335
Daily Pivot Point R3 0.9378



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