FxWirePro: EUR/GBP jumps to over 6-week peak on hard line in EU talks
The euro soared to an over 6-week peak against the British pound as Britain confirmed a hardline stance on trade talks with the EU. Moreover, the selling pressure around the British currency intensified as disappointment…
The euro soared to an over 6-week peak against the British pound as Britain confirmed a hardline stance on trade talks with the EU.
Moreover, the selling pressure around the British currency intensified as disappointment grew that the new finance minister may not increase spending as much as expected.
On Thursday, senior minister Michael Gove told parliament that the UK would not trade away its sovereignty in pursuit of a trade deal with the EU.
EUR/GBP is trading 0.3 percent up at 0.8561, having hit a high 0.8574 earlier, its highest since January 15.
Momentum indicators are bullish: RSI strong at 64, MACD supports upside and Stochs are at oversold levels.
Immediate resistance is located at 0.8589, a break above could take it near 0.8605.
On the downside, support is seen at 0.8513, a break below could drag it till 0.8504.
Recommendation: Good to buy on dips around 0.8538, with stop loss of 0.8513 and target price of 0.8589.
