EUR/GBP regains 0.89 and above, Brexit weighs

The increasing selling bias around the Sterling is now lifting EUR/GBP to fresh daily highs above the key 0.8900 handle.

EUR/GBP boosted by GBP selling

The European cross is picking up extra upside pace today in response to a sharp decline in the British Pound despite some hawkish comments by Governor Carney at the Treasury Committee Hearings.

Heightened concerns over Brexit keep weighing on GBP as of late despite the Bank of England left the door open for a rate hike in the near term, likely at the November meeting as per consensus among investors.

Also collaborating with the pullback in the Sterling, UK’s inflation figures failed to surprise investors in September, where consumer prices rose at an annualized 3.0%, matching previous estimates.

Looking ahead, UK’s labour market figures are due tomorrow ahead of Friday’s public sector’s finance results.

EUR/GBP key levels

The cross is now up 0.11% at 0.8911 facing the next hurdle at 0.8926 (10-day sma) seconded by 0.9012 (55-day sma) and then 0.9034 (high Oct.12). On the other hand, a breach of 0.8855 (low Oct.16) would expose 0.8745 (200-day sma) and finally 0.8744 (low Sep.27).