EUR/GBP climbs to a high of 0.8907, highest level since 3 October
It’s been a slow and steady march higher for EUR/GBP as the pound continues to suffer setback after setback. There isn’t any fresh headlines on the day but whispers of a possible general election in the UK to come in May 2019 hasn’t really been helping to inspire confidence in a time when UK politics is searching for calm heads to prevail.
The pound has moved lower across the board and for EUR/GBP, the pair has moved up and is breaking further away from the 100-day MA (red line) today. That means that price bias is now even more bullish.
The next key resistance level to watch out for will be the daily resistance level close to 0.8928. That coincides with the 38.2 retracement level from the longer-term upswing and has been a key swing region that has halted upside moves in the past.
If that gives way, buyers can look towards resistance at 0.8960-70 next before 0.9000 comes into the picture again.
With the euro also struggling to gain traction, trading the pair now has been a case of trading which of the negative sentiment in the respective currencies is worse. And as Brexit negotiations continue to stall and UK domestic politics in a huge mess, the quid is winning the ‘battle of the losers’ here.