EUR/GBP resumes the upside above 0.8600, Brexit eyed

• EUR/GBP moves further north of the 0.8600 handle.
• EU expected to decide on a Brexit delay on Friday/Monday.
• Snap elections before Christmas remain a palpable scenario.

EUR/GBP is extending the choppy performance so far this week, always navigating in the lower end of the range around the 0.8600 mark.

EUR/GBP keeps waiting for EU decision

The European cross has managed to regain some upside momentum in the second half of the week, bouncing off earlier lows in the 0.8600 neighbourhood although faltering in the 0.8640 region, where sits the 10-day SMA and ahead of the key Fibo retracement at 0.8667.

In the meantime, nothing new on the Brexit front, where headlines appear to have entered an impasse while waiting for the EU decision on an extension of the October deadline (any time between Friday and Monday). Market consensus, however, appears divided on the length of such a delay.

Further out, the Sterling is expected to remain wary of increasing rumours on the probable call for early elections following the EU decision, as per recent comments by PM B.Johnson.

EUR/GBP key levels

The cross is gaining 0.19% at 0.8633 and faces the next resistance at 0.8667 (78.6% Fibo of the May-August rally) followed by 0.8814 (200-day SMA) and finally 0.8906 (50% Fibo of the May-August rally). On the downside, a breach of 0.8574 (monthly low Oct.17) would expose 0.8488 (monthly low May 6) and then 0.8474 (2019 low Mar.12).