- The cross quickly drops to 0.8960 on Brexit headlines.
- According to news UK-Germany said to drop key demands.
- EUR/GBP retreats from highs in the 0.9050 area.
The now better tone around the British Pound is now forcing EUR/GBP to test lows in the 0.8960 area.
EUR/GBP weaker on Brexit news
GBP regained buying interest after news cited Germany and the UK could drop key Brexit demands, sending the cross almost a cent lower to the vicinity of the 0.8960/50 band.
According to news agency Bloomberg, Germany could accept a less detailed deal on the UK’s economic and trade links with the European Union in order to finally clinch a Brexit deal.
Earlier in the session, UK’s Service PMI came in above estimates at 54.3 for the month of August.
EUR/GBP key levels
The cross is now losing 0.52% at 0.8963 facing the next down barrier at 0.8937 (low Sep.3) seconded by 0.8911 (55-day SMA) and finally 0.8893 (low Aug.14). On the upside, a breakout of 0.9010 (10-day SMA) would expose 0.9052 (high Sep.5) and then 0.9103 (high Aug.28).
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