- Bullish momentum for the pound after Brexit fading quickly.
- EUR / GBP returns firmly above 0.9000.
He EUR / GBP started the week trading below 0.9000 and then gained momentum until it reached 0.9055. From there it fell back to find support at the 0.9030 area. It is approaching the highs for the day, driven by the advance of the EUR / USD after the start of the American session.
The pound ran out of steam after the start of the week. The momentum after the Brexit deal did not last long. Partly because it was discounted in the market and also because there are still days of uncertainty ahead. The ambassadors of the European Union approved the social security application of the agreement as of January 1. Now is the ratification in each national legislature.
The euro for its part is among the strongest in Europe on Monday, posting moderate gains. In the last hour the EUR / USD rebounded and approached the highs of the day, which gave a boost to the EUR / GBP.
Technical overview
The day chart continues to show the EUR / GBP without a clear direction. It is testing again at the 20-day moving average that passes 0.9050. A close above could give the euro more boost. Just a confirmation above 0.9150 would point to sustained strength.
In the opposite direction, key support remains at 0.8860. Just a close below 0.8970 would increase the odds of a visit at that level.
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