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  • EUR/GBP moves higher to multi-week peaks near 0.8900.
  • Brexit concerns resurfaced and hurt the British pound.
  • US-China trade effervescence props up the risk-off sentiment.

The increasing selling bias in the sterling is now pushing EUR/GBP higher to the vicinity of the 0.8900 mark on Friday, clinching at the same time fresh multi-week highs.

EUR/GBP boosted by Brexit woes

EUR/GBP is reversing two consecutive pullbacks at the end of the week and advances to the vicinity of 0.8900 the figure in response to the re-emergence of Brexit fears.

In fact, discussions between UK and EU officials on the so-called level playing field yielded no positive outcome and both parties have now agreed to meet again in early June, just before the transition period deadline (June 30th).

In the same line, the absence of any common ground between both countries was exacerbated after EU’s M.Barnier noted positions from both parties remain extremely divergent.

EUR/GBP key levels

The cross is gaining 0.49% at 0.8874 and faces the next up barrier at 0.8886 (monthly high May 15) followed by 0.9019 (monthly high Oct.20 2019) and finally 0.9324 (2019 high Aug.12). On the other hand, a drop below 0.8713 (200-day SMA) would expose 0.8670 (monthly low Apr.30) and then 0.8667 (100-day SMA).