- A combination of factors helped the EUR / GBP regain positive traction on Tuesday.
- Lack of progress in Brexit trade talks kept GBP bulls on the defensive.
- A modest pullback in the USD contributed to the euro’s outperformance against the pound.
The crossing EUR/GBP it maintained its bid tone during the mid-Europe session and updates the daily highs, around the 0.9135 region in the last hour.
Following the previous day’s sharp pullback from the 0.9215 region, the cross managed to regain positive traction on Tuesday and was supported by some selling around the British pound. The lack of progress in fisheries, a key point in post-Brexit trade talks, kept sterling bulls on the defensive.
It’s worth remembering that British Prime Minister Boris Johnson warned on Monday that there are still problems in reaching a post-Brexit trade deal. In the latest development, Johnson and the president of the European Commission, Ursula von der Leyen, had a phone call in an attempt to reach a compromise on fishing.
On the other hand, a modest rebound in equity markets did not help the USD as a safe haven to preserve its intraday gains and pushed the EUR / USD towards the recent swing highs. This was further cited as another factor behind the shared currency’s outperformance relative to its British counterpart.
However, it remains to be seen whether the EUR / GBP cross can capitalize on the move or continue its struggle to find acceptance at higher levels. This makes it prudent to wait for some subsequent buying beyond 0.9150 before traders start positioning for any further intraday appreciation moves for the cross.
Technical levels
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