- EUR/GBP gained strong positive traction for the third straight session on Wednesday.
- Persistent Brexit-related uncertainties continued weighing heavily on the British pound.
- The euro consolidates ahead of ECB decision on Thursday and does little to influence.
The EUR/GBP cross shot to six-week tops in the last hour, with bulls now looking to build on the momentum further beyond the 0.9100 mark.
The bearish pressure surrounding the sterling remained unabated through the early European session on Wednesday amid a deadlock in the post-Brexit negotiations. Adding to this, the UK reportedly is planning to break international law over the country’s exit from the EU.
This comes as the penultimate round of discussions kicked off in London on Tuesday and added to the market worries about a no-deal Brexit. This, in turn, took its toll on the British pound and continued driving the EUR/GBP cross higher for the third consecutive session.
Britain will set out its blueprint for life outside the EU, detailing the government’s plans for trade between different parts of the country. The internal market bill is expected to be published sometime around 11:30 GMT and will be followed by UK PM Johnson’s press conference at 15:00 GMT.
On the other hand, the shared currency was seen consolidating in a range as investors now seemed reluctant to place any aggressive bets ahead of the ECB policy decision on Thursday. Hence, the GBP price dynamics remains an exclusive driver of the EUR/GBP pair’s movement on Wednesday.
Technical levels to watch
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