EUR/GBP struggles for direction around 0.8600
- The cross alternates gains with losses around 0.8600.
- Decent support emerged in the 0.8500 neighbourhood.
- Brexit talks between Number 10 and Labour expected to continue.
The better tone around the single currency in combination with today’s sideline theme around the Sterling has taken EUR/GBP to the 0.8600 neighbourhood.
EUR/GBP looks to April 12
The clock keeps ticking and we’re getting closer to the Brexit deadline on April 12 and there is still no news over a deal.
In fact, PM Theresa May is expected to continue the cross-party talks with labour leader Jeremy Corbyn in the next hours, all amidst the prevailing scepticism among market participants. However, all the attention will be on the House of Commons, where MPs could debate on the bill put forward by Y.Cooper, which favours a longer extension of Article 50.
In addition, PM May will meet her EU peers in Brussels on Wednesday in order to present a new version (?) of her plan to leave the European Union.
Back to the cross, the up move is now extending for the fourth consecutive session after bottoming out in the 0.8500 neighbouhood during last week, all ahead of key UK data releases due later in the week: GDP figures and Manufacturing/Industrial Production.
EUR/GBP key levels
The cross is advancing 0.06% at 0.8606 and faces the next hurdle at 0.8648 (high Mar.29) followed by 0.8722 (high Mar.21) and finally 0.8828 (200-day SMA). On the downside, a break below 08567 (21-day SMA) would expose 0.8502 (low Apr.3) and then 0.8483 (low Mar.27).