- EUR / GBP gains strong positive traction on Thursday amid renewed selling around GBP.
- Lack of progress in post-Brexit trade talks clouding prospects for a last-minute deal.
- Investors look forward to the ECB’s monetary policy decision for further momentum in the pair.
Intraday selling around the British pound accelerated during Thursday’s European session and pushed the cross EUR / GBP at two-day highs, around 0.9100 region.
The incoming news has clouded the prospects for a last-minute post-Brexit trade deal and have dragged the British pound lower during the first half of trading action on Thursday. This, in turn, has been seen as one of the key factors that has helped the EUR / GBP cross gain strong positive traction and build on the previous day’s bounce from the 0.8985-80 support zone.
It is worth reporting that a key summit between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen ended without any apparent progress. Officials said both parties are still very far apart on key issues such as fisheries and a level playing field. The negotiators now they have given themselves until the end of the week to reach a compromise.
The downward pressure surrounding the British pound has remained constant after the release of the upbeat UK manufacturing and industrial production figures. Additionally, the UK monthly GDP print was in line with estimates, although it has done little to offer respite to sterling bulls or hinder the strong positive intraday movement for the EUR / GBP cross.
On the other hand, the common currency has been supported by a moderate action in the price of the US dollar, although it falls from a strong bullish conviction before the long-awaited decision of the European Central Bank. The announcement, along with comments from ECB President Christine Lagarde at the post-meeting press conference, could generate new momentum in the pair.
Aside from this, events around the Brexit saga will continue to play a dominant role in influencing the price dynamics of the British pound. This will further help infuse some volatility around the EUR / GBP cross and generate some significant trading opportunities on Thursday.
EUR / GBP technical levels
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