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FxWirePro: EUR/GBP slips further into daily cloud, refreshes monthly low at 0.8777

Chart - Courtesy Trading View EUR/GBP was trading 0.16% lower on the day at 0.8777 at around 10:00 GMT, hits fresh monthly lows. The pair is extending previous session's weakness and break below 55-EMA, slips further int…

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Chart - Courtesy Trading View 

EUR/GBP was trading 0.16% lower on the day at 0.8777 at around 10:00 GMT, hits fresh monthly lows. 

The pair is extending previous session's weakness and break below 55-EMA, slips further into the daily cloud.

The latest optimism over a new Brexit deal underpins the British Pound and drags the pair lower.

News about confirmation of a final deal on the Northern Ireland protocol between the UK and EU keeps sentiment buoyed.

Further, rising bets for additional rate hikes by the Bank of England (BoE) lend additional support to the pound.

Focus on speeches by BoE officials - Deputy Governor Jon Cunliffe, Chief Economist Huw Pill and Monetary Policy Committee member Catherine Mann for cues.

Technical indicators are bearish. Stochs and RSI are biased lower. Bearish RSI divergence adds to the downside bias. 

Support levels - 0.8750 (110-EMA), 0.8722 (Cloud base)

Resistance levels - 0.8803 (55-EMA), 0.8829 (21-EMA)

Summary: EUR/GBP poised for further downside. Scope for test of cloud base support at 0.8722. 
 

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