EUR/GBP drops below 0.90 handle

Short squeeze in GBP gathered pace on falling prospects of ‘Hard Brexit’, pushing EUR/GBP to a session low of 0.8967 levels.

GBP soars across the board

The British Pound is having a good time out there after a long time. The selling interest in the British Pound ran out of steam after UK PM May accepted a Parliamenty vote over her Brexit plans. Moreover, markets believe that would help May secure better deals while negotiating with her EU counterparts.

Meanwhile, EUR/USD pair dropped as well after having breached a key support level of 1.11. Consequently, the EUR/GBP pair suffered losses. The cross was last seen trading around 5-DMA level of 0.8989 levels.

EUR/GBP Technical Levels

A move back above 0.90 handle would open doors for a revisit to Asian session high of 0.9128, beyond which Friday’s high of 0.9225 levels. On the other hand, a breakdown of support at 0.8969 (hourly 100-MA) could yield a much deeper retracement to 0.89 (zero figure) and 0.8850 (hourly 200-MA) levels.