EUR/GBP drops from 2-week highs to test multi-month lows on Brexit talk progress

• Pound strengthens ahead of crucial Brexit vote. 
• A statement from the UK government will be delivered later today. 

The EUR/GBP pair dropped to test last week multi-month lows on the back of a stronger pound across the board ahead of the “meaningful vote” tomorrow. 

Speculations and rumors about the next steps regarding Brexit added support today to the pound that recently gained momentum. A statement from the UK government regarding Tuesday’s motion is expected. 

Uncertainty continues to prevail ahead of the vote in the Parliament of May’s revised Brexit deal. Still, the pound managed to rise sharply across the board over the last hours. 

The EUR/GBP peaked earlier today at 0.8675, the highest level in two weeks. But since then lost more than a hundred pips. It has recently bottomed at 0.8530, less than five pips above last week lows. It is hovering near the lows, facing bearish pressure. 

So far the area around 0.8525/30 is again offering support. A break lower would see the lowest price since May 2017 and could clear the way for a test of 0.8500.