- EUR/GBP uptrend fails at 0.9180 and retreats below 0.9100.
- The pound appreciates on the back of GBP/USD strength in spite of lingering Brexit fears.
- EUR/GBP to target 0.9308 in three-months – Commerzbank
The euro has pulled lower from three-month highs at 0.9180 on Tuesday, to reach session lows below 0.9100. The strength of the GBP/USD, which has appreciated 0.7% today, has buoyed the sterling across the board in spite of the looming Brexit fears.
Euro falters amid broad-based GBP strength
The common currency has trimmed gains after having appreciated nearly 3% over the last three weeks. A brighter market mood, with Wall Street, set to close its best quarter in decades and end of quarter moves have boosted the pound against the dollar, pushing the GBP higher across the board.
Investors have overlooked the comments from Michel Barnier, chief EU negotiator, who accused the UK of making unacceptable demands on financial services. These comments reveal the distance between the two parties, casting casts doubts about the chances of clinching a trade deal only six months ahead of the end of the transition period.
EUR/GBP to target 0.9308 in three-months – Commerzbank
On the bigger picture, the pair remains positive, and according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, aiming to 0.9308 over the next three-months, EUR/GBP is at three-month highs and already approaching the 61.8% retracement at 0.9184. Above here will trigger a move to 0.9308/23, this is the location of the 78.6% retracements of the move seen since March and the 2017 high at 0.9308 and this represents our initial upside target zone.”
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