- EUR/GBP remains trading sideways between 0.9000 and 0.9100.
- The pair shows no clear direction with all eyes on the Brexit.
The euro is going though a minor appreciation on Wednesday after having bounced from support at 0.9005/15 area. The pair, however, remains on the defensive, with upside moves limited below the confluence of 20 and 50-day SMAs, at 0.9080.
EUR/GBP moving sideways with all eyes on the Brexit
On the short-term, the euro-pound is showing no clear directions, with all eyes on the Brexit talks. The resumption of the negotiations this week have eased concerns the consequences of a “hard Brexit” although the positive impact on the British pound has been muted.
The EUR/GBP seems likely to remain directionless, moving sideways roughly between support levels right above 0.9000 and 0.9100, awaiting the outcome of the talks to define the mid-term path.
On the upside, the pair should break above trendline resistance at 0.9100 to ease bearish pressure and confirm the bullish reaction above 0.9145 (October 20 high) and 0.9220 (September 23 high).
On the downside, below 0.9005 (October 14 low), the pair might find support at 0,8911 (61,8% Fibonacci retracement of the May – September rally) and before testing September lows at 0.8865.
EUR/GBP daily chart