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  • EUR/GBP gained traction for the fourth consecutive session on Friday.
  • Brexit anxieties weighed on the British pound and remained supportive.
  • Descending trend-channel barrier might keep a lid on any further gains.

The EUR/GBP cross caught some aggressive bids during the mid-European session and shot to fresh weekly tops, around the 0.8950-55 region in the last hour.

The cross built on this week’s recovery move from the 0.8865-60 region and gained some follow-through traction for the fourth consecutive session on Friday. Brexit anxieties exerted some downward pressure on the British pound, which, in turn, was seen as one of the key factors driving the EUR/GBP cross higher on the last day of the week.

In the latest Brexit-related developments, Reuters reported on Friday that EU ambassadors called upon the European Commission to present contingency measures for a no-deal urgently. Separately, British Prime Minister Boris Johnson noted that substantial and important differences remain to be gapped in negotiations and tempered hopes for a last-minute Brexit deal.

On the other hand, the shared currency benefitted from the prevalent selling bias surrounding the US dollar amid sustained US dollar selling bias. This further contributed to the EUR/GBP pair’s intraday positive move. That said, bulls might still find it difficult to break through a resistance marked by the top end of a multi-week-old descending trend-channel.

In the absence of any major market-moving economic releases, either from the Eurozone or the UK, investors will keep a close eye on the incoming Brexit-related headlines for some meaningful trading opportunities around the EUR/GBP cross. The EU’s chief Brexit negotiator, Michel Barnier will be travelling to London for Brexit talks.

Technical levels to watch

 

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