Note

EUR/GBP jumps near 0.9000 as Brexit, Scotland hurt the pound

Verified Official
· Views 534
  • EUR/GBP breaks beyond 0.89940 resistance and approaches 0.9000.
  • The pound weakens on Brexit uncertainty and Scotland's independence referendum.
  • Breach of 0.9000 would improve the euro's near-term bias.

The euro has accelerated its recovery from 0.8865 lows earlier this week, appreciating to levels right below 0.9000. The pair is on course to gain 0.7% on the week, regaining lost ground after having depreciated in three of the last four weeks.

Brexit and Scotland weigh on the pound

The cable is showing broadly vulnerable on a thin trading session due to the Thanksgiving weekend in the US. Brexit uncertainty and speculation of a new independence referendum in Scotland have dented confidence in the GBP.

Another week is gone without any significant progress in the UK-EU negotiation for a post-Brexit trade deal. With only five weeks more left before the end of the transition period, the chances of an unorderly exit from the Unions are increasing considerably as the positions in key issues like fishing continue far apart.

Beyond that, Scottish National Party leader, Nicola Sturgeon, announced on Friday that she wants to celebrate a second independence referendum “in the earlier part” of the next parliamentary term, which begins next year. This has contributed to weakening the sterling against its main rivals.

EUR/GBP approaching important resistance at 0.9000

From a technical perspective, the EUR/GBP has broken above the top of the last for day’s range and approaches an important resistance at 0.9000 (November 12 and 13 high). Above here, negative pressure might ease which could help to push the pair towards 0.9050/65 (November 5 and 6 highs) and 0.9105 (October 12, 13 highs).

On the downside, a bearish reversal might find support at 0.8940 (November 25high) and below here, 0.8860 (June, September and November lows) and 0.8800/10 (May 4, 11 highs).

Technical levels to watch

EUR/GBP

Overview
Today last price 0.8987
Today Daily Change 0.0068
Today Daily Change % 0.76
Today daily open 0.8919
Trends
Daily SMA20 0.8958
Daily SMA50 0.9038
Daily SMA100 0.9039
Daily SMA200 0.8957
Levels
Previous Daily High 0.8934
Previous Daily Low 0.8899
Previous Weekly High 0.8995
Previous Weekly Low 0.8915
Previous Monthly High 0.9162
Previous Monthly Low 0.8984
Daily Fibonacci 38.2% 0.8921
Daily Fibonacci 61.8% 0.8912
Daily Pivot Point S1 0.89
Daily Pivot Point S2 0.8882
Daily Pivot Point S3 0.8865
Daily Pivot Point R1 0.8936
Daily Pivot Point R2 0.8953
Daily Pivot Point R3 0.8971

Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.

FOLLOWME Trading Community Website: https://www.followme.com

If you like, reward to support.
avatar

Hot

No comment on record. Start new comment.