EUR/GBP weaker, drops to lows near 0.8840

The European cross stays weak in the mid-0.8800s on Friday.
Brexit jitters keep the Sterling under pressure so far.
May’s no-confidence vote scheduled for Tuesday.

Pablo Piovano FXStreet

The renewed soft tone around the shared currency is now forcing EUR/GBP to recede to fresh daily lows in the 0.8850 area.

EUR/GBP focused on Brexit

The now selling bias around EUR in combination with the sideline theme surrounding the British Pound today is collaborating with the current knee jerk in the cross, which comes down after yesterday’s sharp rebound to the vicinity of 0.8900 the figure.

In the meantime, Brexit remains the sole catalyst for the price action around the Sterling for the time being, where latest news said a no-confidence motion against PM Theresa May is scheduled for Tuesday.

The Sterling retreated sharply on Thursday following an almost generalized disagreement on May’s draft deal, where several members of her Cabinet resigned, including Brexit minister D.Raab.

EUR/GBP key levels

The cross is now losing 0.36% at 0.8838 and a breach of 0.8799 (21-day SMA) would aim for 0.8746 (10-day SMA) and finally 0.8655 (low Nov.13). On the other hand, the next up barrier is located at 0.8889 (high Nov.15) seconded by 0.8941 (high Oct.31) and then 0.9001 (high Sep.24).

Author

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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