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

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