- The cross drops below 0.8900, daily lows.
- The Sterling picks up pace on news on Article 50.
- Debate on PM May’s Brexit deal kicks in today.
EUR/GBP is reverting yesterday’s positive performance following a renewed and strong rebound in the British Pound.
EUR/GBP finds support near the 100-day SMA
After climbing to fresh daily highs in the mid-0.8900s in early trade, the European cross came under moderate selling pressure, breaking below the key support at 0.8900 the figure and so far finding support around 0.8880, where sits the 100-day SMA.
In fact, the Sterling has quickly gathered fresh steam following news that the EU court aide hinted at the likelihood that the Article 50 could be revoked unilaterally. The news boosted the demand for GBP although its longer term sustainability is yet to be seen.
Looking ahead, all the attention will be on the House of Commons, as today kicks in the debate on May’s Brexit deal ahead of the key vote on December 11.
EUR/GBP key levels
The cross is now losing 0.29% at 0.8897 and a breakdown of 0.8890 (low Dec.4) would aim for 0.8876 (10-day SMA) and finally 0.8836 (200-day SMA). On the flip side, the next up barrier emerges at 0.8945 (high Dec.4) seconded by 0.9001 (high Sep.24) and then 0.9032 (high Aug.9).
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