EUR/GBP is consolidating below S1 at 0.8842 having dropped from a high of 0.8876 to a low of 0.8834. The pound is solid and has risen from the 1.2920’s to score a high of 1.3042 on reports of UK PM May’s latest Brexit plan to avoid “extensive” border checks in Ireland that is making headway with the EU. EUR/GBP has broken below the key support level at 0.8848 and is extending its losses within the descending channel that commenced from highs of 0.8975. The 100-D SMA has been breached and sights are on S2 located down at 0.8824 as sentiment tilts in favour of the pound. “May has reportedly suggested the whole of the UK will remain in customs union with the EU in the absence of a comprehensive Brexit border deal and will aim to get her plans approved by parliament rapidly, in order to avert prolonged infighting within the Conservative party – parts of which will not support this approach,” analysts at Scotiabank have explained while remaining cautious and suggesting that the pound will remain sensitive to Brexit headlines in the near term and warning that downside risks remain in the weeks ahead. Italian budget drama is not over yet Meanwhile, the Italian budget drama is not over yet. Italy’s Finance Minister Giovanni Tria has backtracked on the government’s medium-term budget plans following negative reactions from financial markets and the European Commission (EC): “Having previously targeted a deficit of 2.4% of GDP in each year out to 2021, Tria announced on 3 October that the deficit would instead be trimmed to 2.2% in 2020 and 2.0% in 2021, prompting a retracement of Italian bond yields. However, despite Tria’s comments, we still think there is a good chance that these targets will be deemed non-compliant with EU fiscal rules once key growth assumptions are presented to the Commission (by 16 October at the latest),” analysts at Standard Chartered Global Research explained, suggesting that the prospect of an early general election being called (potentially by mid-2019) will rise too. EUR/GBP levels EUR/GBP has broken below the 5-month uptrend that was located at 0.8865 although the 200 day ma at 0.8839 is holding the downside which may provoke a recovery. “We should then see a rally to the .9011 level and the August high at .9031. Above .9011/31 sits the .9101 August high. Above there would target the .9161 Fibonacci resistance and then the .9291 2009-2018 downtrend line,” analysts at Commerzbank argued. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Crude Oil WTI Technical Analysis: Black Gold retreats to $74.00 a barrel as bulls get ready to new leg up to 76.00 FX Street 4 years EUR/GBP is consolidating below S1 at 0.8842 having dropped from a high of 0.8876 to a low of 0.8834. The pound is solid and has risen from the 1.2920's to score a high of 1.3042 on reports of UK PM May's latest Brexit plan to avoid "extensive" border checks in Ireland that is making headway with the EU. EUR/GBP has broken below the key support level at 0.8848 and is extending its losses within the descending channel that commenced from highs of 0.8975. The 100-D SMA has been breached and sights are on S2 located down at 0.8824 as… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.