EUR/GBP: expectations on the ECB and EU politics weighing hard

Currently, EUR/GBP is trading at 0.8474, down -0.11% on the day, having posted a daily high at 0.8505 and low at 0.8460.

EUR/GBP has reversed 90% of the Sep rally to 0.9229 and is now consolidating the downside at aforementioned levels. The concerns are switching from Brexit to the EU project as a whole and there is mounting pressure on the euro. 

"The market's increased focus on political risk in Europe has already contributed towards the largest decline in the trade-weighted euro since the same period of last year," explained analysts at Bank of Tokyo Mitsubishi, adding, "Similar to last year, the euro has weakened heading into December when the Fed is also expected to raise rates again and the ECB is expected to ease policy further by announcing an extension of their QE programme beyond March."

Pound making a come back on EU concerns - BTMU

EUR/GBP levels

Spot is presently trading at 0.8475, and next resistance can be seen at 0.8484 (Daily Open), 0.8484 (Monthly Low), 0.8484 (Weekly Low), 0.8484 (Hourly 20 EMA) and 0.8497 (Weekly Classic S1). Support below can be found at 0.8465 (Yesterday's Low), 0.8460 (Daily Low), 0.8434 (Daily Classic S1), 0.8420 (Weekly Classic S2) and 0.8383 (Daily Classic S2).