- The cross moves higher on the back of the weaker Sterling.
- The key 200-hour SMA is the next key target on the upside.
- Brexit concerns keep weighing on sentiment.
The offered bias around the British Pound is now bolstering the up move in EUR/GBP to fresh 2-day highs in the proximity of 0.8600 the figure.
EUR/GBP focused on Brexit, of course
After two consecutive daily pullbacks, the European cross is now giving some signs of life and advances to the area close to the key 0.8600 handle.
Brexit jitters have re-emerged in past sessions and have been hurting the sentiment around the Sterling, forcing it to recede from recent yearly tops vs. both the greenback and the shared currency.
Still on Brexit, the UK government and the DUP are expected to resume talks today, although consensus among market participants does not see any imminent breakthrough in these negotiations.
In addition, PM Theresa May has suggested she will step down in exchange of an approval of her Brexit deal on a third meaningful vote.
Following recent ‘indicative votes’ and among other proposals, MPs have so far rejected any new referendum to leave the European Union, a Brexit ‘no deal’ scenario on April 12 and staying within a customs union after the EU-UK divorce.
EUR/GBP key levels
The cross is gaining 0.53% at 0.8569 facing the next hurdle at 0.8577 (200-hour SMA) seconded by 0.8680 (55-day SMA) and finally 0.8722 (high Mar.22). On the flip side, the breach of 0.8483 (low Mar.27) would expose 0.8471 (2019 low Mar.13) and then 0.8402 (monthly low Feb.22 2017).
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