- EUR/GBP continues to attract some dip-buying ahead of the key 0.9000 psychological mark.
- The GBP bulls refrained from placing aggressive bets and extended some support to the pair.
- A softer tone surrounding the shared currency kept a lid on any strong gains, at least for now.
The EUR/GBP cross edged higher through the first half of the European trading session and was last seen hovering near daily tops, just below mid-0.9000s.
The cross managed to attract some dip-buying ahead of the key 0.9000 psychological mark and has now recovered a part of the previous day’s steep intraday fall of around 125 pips. It is worth recalling that prospects for the resumption of Brexit talks provided a strong boost to the British pound on Wednesday and exerted some heavy pressure on the EUR/GBP cross.
Meanwhile, the EU’s chief Brexit negotiator, Michel Barnier warned on Wednesday that level playing field remains a fundamental concern and that there will be no trade deal without a fair solution for fisheries. It is worth recalling that the recent trade talks between the UK and the EU had stalled amid disagreements over fishing access and competition issues.
Adding to this, the imposition of fresh lockdown restriction in some parts of the UK, to curb the second wave of coronavirus infections, further held the GBP bulls from placing aggressive bets. This, in turn, was seen as one of the key factors that assisted the EUR/GBP cross to find some support near 100-day EMA and regain positive traction on Thursday.
On the other hand, the shared currency was being weighed down by a strong pickup in the USD demand. In the absence of any major market-moving economic releases, either from the Eurozone or the UK, a softer tone surrounding the common currency kept a lid on any strong gains for the EUR/GBP cross and warrant some caution before positioning for any further gains.
Technical levels to watch
Share
