- The cross inches higher and approaches 0.8700.
- The Sterling loses further momentum ahead of key vote.
- UK Parliament will vote on Brexit ‘Plan B’ on Tuesday.
The now softer tone around the British Pound is sustaining the up move in EUR/GBP top fresh daily highs in the 0.8680 region.
EUR/GBP met support near 0.8620
The European cross is posting gains for the first time after five consecutive sessions as the rally in the Sterling seems to be taking a breather at the beginning of the week.
EUR/GBP manages to regain some attention on Monday following a bout of downside pressure in GBP, all ahead of the crucial vote in the UK Parliament tomorrow.
It is worth recalling that the Parliament will vote on PM May’s ‘Plan B’ for Brexit along with amendments suggested by several MPs, with the Irish backstop, a potential second referendum and the postponement of Article 50 on top of the agenda.
EUR/GBP key levels
The cross is now gaining 0.45% at 0.8678 and a break above 0.8756 (10-day SMA) would open the door to 0.8861 (200-day SMA) and then 0.8862 (high Jan.21). On the other hand, the next support is located at 0.8617 (2019 low Jan.25) seconded by 0.8402 (monthly low Feb.22 2017) and finally 0.8382 (monthly low May 10 2017).
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