EUR/GBP climbs to highs near 0.8650

The renewed selling bias around the British Pound is allowing EUR/GBP to reclaim the mid-0.8600s, or multi-day tops on Monday.

EUR/GBP stronger on Brexit concerns

The European cross has quickly clinched 2-week peaks in the 0.8650/60 band at the beginning of the week as the selling pressure around the Sterling has intensified on renewed Brexit jitters.

GBP weakness picked up pace after UK’s PM T.May said early on Monday that the country will look for a separate trade deal with the European Union once it has withdrawn from the bloc. It is worth mentioning that May intends to trigger Article 50 by March.

Data wise in Euroland, German trade surplus surpassed estimates in November, coming in at €21.7 billion, while Industrial Production has expanded less than expected 0.4% on a monthly basis during the same period.

EUR/GBP key levels

The cross is now advancing 0.89% at 0.8651 and a surpass of 0.8668 (high Dec.30) would aim for 0.8710 (high Nov.15) and finally 0.8828 (high Nov.10). On the other hand, the next support is located at 0.8583 (low Jan.9) ahead of 0.8494 (20-day sma) and then 0.8446 (low Jan.3).