EUR/GBP struggles below 0.8600 handle, multi-month lows ahead of Brexit motion debate/vote

   •  Hopes of delayed Brexit/second referendum continue to underpin GBP.
   •  A modest uptick in the shared currency helped limit further downside.
   •  Tradres now eye Brexit motion debate/vote for some fresh impetus.

The EUR/GBP cross traded with a mild negative bias through the early European session and remained within striking distance of multi-month lows set in the previous session.

The cross extended its rejection slide from the 0.9100 handle, touched in early-Jan., and finally broke through the 0.8600 handle on Tuesday, falling to its an intraday low level of 0.8562 - the lowest since May 2017.

The recent reports on a possible delay to the fast-approaching Brexit deadline and (or) a second referendum turned out to be one of the key factors behind the British Pound's outperformance against its European counterpart. 

However, the prevalent US Dollar selling bias was seen lending some support to the shared currency and helped limit further downside, at least for the time being and amid highly near-term oversold conditions.

Moving ahead, today's Brexit motion debate/vote in the UK parliament will not be looked upon for some meaningful impetus in absence of any major market moving economic releases, either from the Euro-zone or the UK.

However, given firming expectations for a softer Brexit, today's event seems unlikely to be a game changer and the prevalent strong bullish sentiment around the British Pound might keep a lid on any attempted recovery.

Technical levels to watch

The 0.8560-50 region might continue to protect the immediate downside, below which the bearish trajectory could further get extended towards 0.8530-25 intermediate support en-route the key 0.8500 psychological mark.

On the flip side, attempted recovery back above the 0.8600 handle now seems to confront some fresh supply near the 0.8620-25 region, which if cleared might trigger a short-covering bounce towards the 0.8665-70 resistance.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD surges above 1.1100 as Trump announces steps against China

EUR/USD is trading above 1.1100, up on the day. President Trump said he orders companies to search Chinese imports for drugs. Earlier he criticized Powell's lack of action. 


GBP/USD jumps above 1.2250 on USD weakness

GBP/USD is trading close to the monthly highs above 1.2250 as the US dollar falls following Powell's hint of cutting rates and Trump's angry response. 


USD/JPY plummets to ten-day lows below 106 as Trump goes berserk on Twitter

The USD/JPY came under strong selling pressure in the last hour and erased nearly 100 pips as US President Donald Trump's latest rant on Twitter forced investors to seek refuge and ramped up the demand for safe-haven JPY. 


Gold gains more than $30, eyes 2019 highs on Trump’s tweet

Gold continues to rise sharply amid concerns about the impact of the escalation in the US-China trade war. The demand for safe-haven assets emerged over the last hours, leading to a rally in the yellow metal. 

Gold News

Powell powerless against Trump's trade wars – US braces for recession, USD set to move

"The most powerful central banker in the world" – is how we and others characterize Fed Chair Jerome Powell. While that may be true – monetary policy is reaching its limits – especially in the face of a trade war.

Read more