The EUR/GBP cross maintained strong bid tone for the second consecutive session and built on Friday's strong recovery move, further beyond the 0.8500 psychological mark.
Currently trading around 0.8525-30 band, the cross rose to multi-day tops amid some renewed selling pressure around the British Pound in reaction to news report that the UK government is preparing for a new Scottish independence referendum. Adding to this, a bid tone surrounding the EUR/USD major, and possibilities of some short-covering following a decisive move above the 0.8490-95 horizontal resistance, further collaborated to the EUR/GBP pair's strong up-move at the start of a fresh trading week.
Meanwhile, lower-than-expected Spanish flash CPI print for the month of February did little to hinder the pair's up-move as market participants now look forward to fresh developments surrounding the Brexit legislation, with the House of Lords begin discussion and cast vote on amendments to the bill.
Technical levels to watch
From current levels, 50-day SMA near 0.8545-50 region seems to act as immediate resistance, which if cleared has the potential to lift the cross towards 0.8590 hurdle (Feb. 17 high) ahead of 0.8600 round figure mark. On the flip side, the 0.8500 handle now become immediate support to defend. Failure to hold this immediate support, leading to a subsequent break below 0.8475 horizontal support, would negate any near-term bullish bias and turn the pair vulnerable to head back towards testing 0.8430 intermediate support, en-route the 0.8400 round figure mark.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.