EUR/GBP jumps to highs around 0.8760

The increasing softer tone around the Sterling is allowing EUR/GBP to test the area of daily peaks around 0.8760.

EUR/GBP attention to Brexit, ZEW

The European cross is recovering part of the ground lost following the sell-off at the beginning of the week, managing to come back after briefly probing lows in he 0.8700 neighbourhood.

GBP is again under pressure after the UK Parliament has passed the Brexit bill that will allow PM Theresa May to trigger Article 50 (at some point in late March) and thus formally starts the withdrawal from the European Union. The bill is expected to become law later today after receiving Royal Assent.

In the meantime, SNP’s N.Sturgeon keeps pushing for a second independence referendum in Scotland, likely to be called in the Autumn 2018.

On the data front, nothing scheduled in the UK calendar while the ZEW Survey is due in both Germany and the euro region. Further releases will see EMU’s Industrial Production for the month of January.

EUR/GBP key levels

The cross is now advancing 0.54% at 0.8763 and a surpass of 0.8787 (high Mar.10) would aim for 0.8860 (2017 high Jan.16) and then 0.8902 (high Nov.9). On the other hand, the next support is located at 0.8703 (low Mar.13) ahead of 0.8686 (low Mar.10) and finally 0.8651 (low Mar.9).