- The pound marks highs throughout the market before the possibility of some kind of agreement for Brexit.
- EUR / GBP testing 0.9000, with the bearish bias reinforced.
The pound continues to be fueled by speculation, rumors and news pointing to a possible agreement between the European Union and the United Kingdom. Given this, the EUR / GBP experienced another decline and hit a week-long lows just below 0.9000.
The cross is trading around the round number with a clearly bearish bias. The next support is seen at last week’s lows at 0.8980 and below it will follow 0.8940.
According to BBC reporters, the UK would have accepted the idea of a “managed divergence” to have preferential access to the European single market. In turn, German Chancellor Merkel affirmed that there was progress although an agreement is still missing. The Prime Minister of the United Kingdom, Johnson affirmed in Parliament that there are every opportunity and hope to reach an agreement.
With regard to the coronavirus, the British government indicated that there is consensus to remove restrictions during the Christmas holidays.
Data-wise, there were higher-than-expected positive Eurozone PMI figures, which boosted EUR / GBP only momentarily, especially after the UK fell below market consensus.
Technical levels
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