- The EUR/GBP rose to 0.8891 – the highest level since March 12 on migration deal.
- The daily chart shows a bullish Bollinger Band breakout.
The bid tone around the common currency strengthened in Asia, pushing the EUR/GBP higher to 0.8891 – the highest level since March 12 after the European Union (EU) leaders reached a migration on the agreement.
At press time, the currency pair is trading at 0.8884.
The migration row was a threat to EU’s unity and could have brought down the German Chancellor Merkel’s coalition government. However, the political uncertainty has likely faded after the migration deal and hence the common currency may remain solidly bid in the European and US session.
That said, the bullish momentum could wane if the Eurozone preliminary consumer price index (CPI) for May prints below estimates.
Further, the bullish move will likely be extended if the UK reports a wider-than-expected current account deficit figure for the third quarter.
EUR/GBP Technicals
The pair has cleared the resistance at 0.8842 (May 4 high) in a convincing manner in Asia, signaling an upside breakout of the 0.8842 – 0.87 trading range. The daily chart also shows a bullish Bollinger Band breakout. (Standard deviation of +2,-2 in 20-day moving average).
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