EUR/GBP erases gains, back near monthly lows under 0.8550

• EUR/GBP remains sideways supported by 0.8530.
• Bias points to the downside while under 0.8630.

The EUR/GBP erased gains and dropped back under 0.8550. Earlier on Monday it climbed to 0.8566 and lost momentum after the beginning of the American session.  

As of writing, EUR/GBP stands at 0.8545, around the same level it closed on Friday. The improvement in market sentiment in Wall Street, weakened the US dollar and pushed the cross to the downside.

Brexit and COVID-19 concerns keep the pound limited for the moment. Discussions about UK’s Brexit bill continue without agreement while at the same time, covid cases rose to monthly highs.

Range prevails, risks tilted to the downside

The EUR/GBP continues to move sideways in a range. Price again was rejected from above 0.8600 while to the downside the barrier at 0.8530/40 remains intact.

Risks are likely to remains on the downside while under 0.8630, favoring (slightly) a break under the 0.8530 area that will expose 0.8500; below attention would turn to 0.8470 (April low).

Technical levels