- Libra falls back after suspension of Brexit negotiations.
- EUR / GBP capped on the upside by 0.9000.
EUR / GBP erased losses the day’s losses and rebounded from 0.8920 / 25 to 0.8960, after it was learned that the Brexit talks They were suspended after one of the negotiators of Michel Barnier’s team from the European Union tested positive for coronavirus.
Since Wednesday, the EUR / GBP has been trading sideways after failing to break above 0.9000. Brexit is one of the key short-term factors. The novelty of the suspension of the negotiations raises concern as time continues to pass and an agreement is not reached.
Technical overview
The EUR / GBP maintains a bearish bias in a general outlook, but to enable further lows, the cross must first return below 0.8900 and then break the strong support of 0.8860 / 65, which contained the lows in June, September and November. This would trigger more losses.
In the opposite direction, the euro faces first resistance at 0.9000. To change the negative bias you must have a daily close above 0.9070, lor that it will involve the breaking of a downtrend line and a return to key day moving averages.
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