EUR / GBP clings to gains near 0.9075-80 zone after ZEW data for Germany and eurozone

• EUR / GBP regained positive traction on Tuesday and fell back to 0.9100.
• Lingering Brexit-related uncertainties weigh on the GBP and support the pair’s upward move.
• The common currency maintains its modest gains after the upbeat ZEW Economic Sentiment Index.

The crossing EUR/GBP moves higher during the European session on Tuesday, staying close to daily highs around the 0.9080 region.

Following the previous day’s sharp retracement of more than 100 pips from the 0.9140 region, the highest level since October 20, the crossing has managed to capture some new purchases on Tuesday. The relative underperformance of the British pound against its European counterpart could attributed solely to persistent uncertainty about the outcome of post-Brexit trade talks.

The Prime Minister of the United Kingdom, Boris Johnson, will travel to Brussels in a last effort to reach a trade agreement post-Brexit with the President of the European Commission, Ursula von der Leyen. The EU’s main Brexit negotiator, Michel Barnier said on Monday that significant differences remain open on the three key outstanding issues.: a level playing field, governance and fisheries.

Apart from a softer tone around the British pound, the EUR / GBP cross has been supported by the appearance of some purchases around the common currency. Despite expectations of further monetary easing from the ECB, the euro has gained some traction and has remained firm after the publication of the ZEW economic sentiment index for the euro zone and Germany better than expected for November.

Now it will be interesting to see if the bulls can capitalize on the positive move or if the EUR / GBP cross encounters further selling at higher levels. In the absence of UK economic releases, events related to the Brexit saga will continue to influence sterling price dynamics and help investors seize some short-term opportunities.

EUR / GBP technical levels