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

EUR/GBP

Overview
Today last price 0.9228
Today Daily Change -0.0030
Today Daily Change % -0.32
Today daily open 0.9258
 
Trends
Daily SMA20 0.9005
Daily SMA50 0.9026
Daily SMA100 0.8972
Daily SMA200 0.88
 
Levels
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

 

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops below 1.1850 amid growing covid concerns

EUR/USD has dropped under 1.1850 as European coronavirus cases hit records. France exceeded 50K daily cases and Spain announced a state of emergency. US fiscal stimulus talks remain stuck ahead of the elections. 

EUR/USD News

GBP/USD pressured towards 1.3000 amid downbeat market mood

GBP/USD has been extending its losing streak amid a surge in COVID-19 cases in the UK and elsewhere. Investors are shrugging off reports of progress in Brexit talks. 

GBP/USD News

XAU/USD pushed and pulled in jittery market conditions

The price of gold has been testing the bearish commitments above the $1,900 psychological level following a brief spell below it, printing a low of $1,891.50.

Gold News

Bitcoin vs gold: Safe haven battle

A new idea has been floating around in Safe Haven Trading. Well, it’s not entirely new, but it’s quite controversial to say the least. For the longest time, gold has been considered to be the purest form of safe haven trading. 

Read more

WTI heavily on the back foot, but right tail remains fat

The coronavirus pandemic gets a new lease of life on the commodities market's risk barometer and at the time of writing, WTI is trading at $38.52 and has travelled from a high of $39.72 to a low of $38.31.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures