EUR/GBP firmer above 0.8700, GBP tumbles

The selling bias around the Sterling has now gathered further traction, allowing EUR/GBP to break above the 0.8700 handle.

EUR/GBP eyes 2016 highs near 0.8730

The European cross has regained levels above the 0.8700 mark following a renewed and strong offered bias around GBP as uncertainty around ‘Brexit’ seems to have returned to the fore.

In fact, and following recent comments, UK’s PM T.May has vowed to trigger Article 50 by end of March, adding at the same time that leaving the EU will be a ‘complex process’.

On a more optimistic side, Chancellor P.Hammond noted that the UK is entering the Brexit process in an extremely strong economic position, although keeping the single market (without quotas or tariffs) will be crucial.

EUR/GBP key levels

The cross is now losing 0.64% at 0.8715 and a breakout of 0.8727 (2016 high Aug.16) would open the door to 0.8778 (high Jul.31 2013) and finally 0.8815 (high Feb.15 2013). On the downside, the next support aligns at 0.8609 (3-month support line) ahead of 0.8555 (low Sep.23) and finally 0.8522 (55-day sma).