EUR/GBP: Euro is boosted amid Brexit-related uncertainties

• The Pound is vulnerable with the EU presenting what looks like unacceptable Brexit withdrawal bill.
• The Eurozone inflation decelerated to 1.2% y/y in February from 1.3% y/y in January.

The EUR/GBP is trading up 0.5% at around 0.8840 as the Sterling is being sold across the board on Brexit related uncertainties. 

The European Union on Wednesday released the Brexit withdrawal draft that has created a storm of dissent among politicians in the UK and Sterling fell across the board. 

The UK Prime Minister Theresa May said that the EU draft text “would, if implemented, undermine the UK common market and threaten the constitutional integrity of the UK by creating a customs and regulatory border down the Irish Sea. No U.K. prime minister could ever agree to it.”

The EU chief Brexit negotiator Michel Barnier said that there are still some significant disagreements between the European Union and the United Kingdom regarding the terms of the transition period. 

Theresa May is set to deliver a speech on Friday and hopefully bring some more clarity to the Brexit situation.

Technically, the next resistance from current spot level is seen at 0.8875 which is the 23.6% Fibonacci retracement of the February 8-14 bull run. Next key resistance is seen at 0.8920 which is the cyclical high and February 14 top. To the downside, support is seen at 0.8870 which is the low of the week and the 78.6% Fibonacci retracement of the February 8-14 bull run. Next key support is seen at 0.87335 which is the cyclical low and the February 8 bottom. 

EURGBP 1-hour chart