- EUR / GBP gains strong traction on Monday and breaks above the 0.9100 level.
- The news around Brexit weighs on the pound and favors the upward movement of the pair.
The British pound has seen a strong sell at the start of the European session on Monday, propelling the EUR / GBP cross to new seven-week highs, around the 0.9130-35 region.
The cross has captured some aggressive buying on the first day of a new week and has prolonged its recent strong bounce from the 0.8865-60 support zone. Incoming Brexit-related news has hit the British pound, which in turn has been considered a key factor behind the strong upward movement of the EUR / GBP.
The EU’s chief Brexit negotiator, Michel Barnier, informed the national ambassadors of the bloc and said that the differences on the three key pending issues remain open. On the other hand, The Sun reported that the Prime Minister of the United Kingdom, Boris Johnson, is ready to withdraw from the talks on Brexit in response to new EU demands.
In the latest development, a UK official said that Brexit talks are likely to end today if there is no further progress. With the transition period ending on December 31st, the certainty of a deadlock increases the risk of a no-deal Brexit and could continue to weigh on the British pound.
Apart from this, the strong bullish momentum could be attributed to some technical buying on a sustained move above the 0.9080-85 horizontal resistance. Therefore, some continuation strength towards 0.9150, on its way to the 0.9195-0.9200 region, seems a possibility.
EUR / GBP technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
