EURGBP at Three-Week Lows on Positive Brexit Headlines
EURGBP trading 0.33% lower at 0.8812 making fresh three week lows on positive news that might point to a Brexit deal. European Council President Tusk said that UK has not come with a realistic and workable proposal but PM Johnson has promised to come forward with a solution that works for all by today. Irish Finance Minister Donohoe said: “What happened yesterday was a positive discussion but the real detail discussion will begin now and that will be in Brussels.” The Brexit developments boost Pound across the board. PM Boris Johnson needs the gathering of 28 leaders in Brussels on October 17 and 18 to sign off on an agreement in order to be able to take United Kingdom out of the European Union on October 31st with a deal.
EURGBP negative short term momentum gains traction as the pair breached below the critical 200-day moving average. On the downside, first support stands at 0.8786 the daily low and then 0.8723 the low from May 19th. Investors holding short positions might sit comfortably as long as the pair trades below 0.8850. On the upside immediate resistance stands at 0.8828 the 200-day moving average and then at 0.8867 the today’s high, while a break above will open the way for a move up to 0.8976 the 100-day moving average. For those looking to buy the pair, an entry point can be when the pair breaks convincingly above the 0.8867 daily top.Download our latest quarterly market outlookfor our longer-term trade ideas.
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