EUR/GBP breaks below the 100-day SMA to fresh lows near 0.8550

The better tone in GBP drags the cross lower to the mid-0.8500s.
Positive headlines around Brexit help the Sterling.
May’s plan could be backed by some Labour MPs.

The now better mood around the British Pound is dragging EUR/GBP to test fresh lows in the mid-0.8500s, although rebounding soon afterwards.

EUR/GBP offered on Brexit headlines

The European cross picked up extra downside pressure today in response to positive headlines from the Brexit front. In fact, news hit the wires that some labour MPs could support PM May’s Brexit plan at today’s vote, although it is still not clear if that would be enough to see her motion passing the House of Commons.

Moving forward, all the attention will be on the House of Commons once again, as MPs will vote only on the withdrawal agreement at 1430 GMT.

Earlier in the session UK GDP figures noted the economy expanded 0.2% inter-quarter during the October-December period and 1.4% on an annualized basis. Additional UK data saw Business Investment contracting 0.9% QoQ during the same period, bettering expectations.

On this side of the Channel, German Retail Sales came in above forecasts during February, the jobless rate inched lower to 4.9% despite the unemployment decreased less than expected.

EUR/GBP key levels

The cross is retreating 0.35% at 0.8571 and a breach of 0.8483 (low Mar.27) would expose 0.8471 (2019 low Mar.13) and then 0.8402 (monthly low Feb.22 2017). On the other hand, the next up barrier aligns at 0.8629 (high Mar.29) seconded by 0.8674 (55-day SMA) and finally 0.8722 (high Mar.22).

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.