EUR/GBP closes in on the 0.9000 handle once again
With the pound slumping in trading today, EUR/GBP is continuing to find momentum in a bid to retest the 0.9000 handle once again. It's been a solid run since May for the pair as buyers drive price from lows around 0.8500 to current levels.
Much like cable (also falling from highs near 1.3200 since May), this feeds into the negative narrative that the pound has suffered amid ongoing Brexit uncertainty. Add to the fact that the UK economy is now presenting noticeable weakness, it also introduces the case for the BOE to look towards loosening monetary policy moving forward.
From a technical perspective, EUR/GBP now arrives at a key resistance level before being able to try and attempt highs seen last year and at the start of January.
Looking at the bigger picture:
The key break towards any upside move above 0.9000 will be holding a firm daily break above the 23.6 retracement level @ 0.9072. That will allow buyers to feel comfortable in challenging for a move above the 0.9100 level (3 January high) before we talk about the August 2017 high of 0.9307.
