EUR / GBP rises further towards 0.9100, breaks the downtrend line

  • Libra under pressure due to lack of agreement between the EU and the UK.
  • EUR / GBP with daily gains in almost three months.

The pair EUR/GBP it is rising sharply on Wednesday, accelerating the bullish move driven by a weaker pound and also technical factors. It peaked at 0.9083, the highest level since October 26.

At time of writing, it is trading at 0.9055 / 60, two hundred pips above last week’s lows. The bullish move is being driven by a fall in the pound across the board affected by the drama of Brexit.

Negotiations between Brussels and London continue. Michel Barnier, the European Union’s chief negotiator, was neither optimistic nor pessimistic about the possibility of a deal.

The UK licenses the Pfizer / BioNTech vaccine, the first Western nation to do so. It is approved for use next week. The announcement boosted the pound against the US dollar for only a few hours.

Breaking key dynamic resistance

EUR / GBP is climbing above a three-month downtrend line that offered resistance around 0.8990 / 0.9000. The breakout boosted the euro further.

A daily close around current levels would point to more gains. The next strong barrier is located between 0.9130 / 50.

The euro has moved further away from medium-term support around 0.8860 / 70. A break to the downside should generate considerable losses.

Technical levels

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