EUR/GBP sharply lower around 0.9000

EUR/GBP has managed to regain the vicinity of the 0.9000 handle, although it remains well in the red territory today.

EUR/GBP lower on GBP strength

The European cross met increasing downside pressure after ‘hard Brexit’ concerns eased significantly following comments by UK’s PM T.May late on Tuesday.

In fact, investors appear somewhat relieved on Wednesday after Theresa May has accepted the Parliament to vote over her ‘Brexit’ plans, with GBP violently reverting the recent deep descent and prompting the cross to test the vicinity of 0.8960 in early trade.

Empty dockets in Euroland and the UK today will keep Brexit and recent comments by T.May on top of today’s market movers, although the speech by BoE’s J.Cunliffe on the effects of Brexit on financial services promises to be interesting.

EUR/GBP key levels

The cross is now losing 1.24% at 0.9005 facing the next support at 0.8967 (low Oct.12) followed by 0.8728 (20-day sma) and finally 0.8701 (4-month support line). On the upside, a surpass of 0.9143 (high Oct.11) would expose 0.9430 (2016 high, GBP flash crash Oct.7) and then 0.9802 (monthly high Dec.2008).