EUR/GBP bears think twice below 0.91 on pounds recovery

EUR/GBP bull's might have to think twice here about their short sterling strategy.UK gilts are higher, the pound is already very weak and thus the BoE are unlikely to add further stimulus in the near future that is all supportive to the pound.

However, there are certainly risks ahead, but today, UK's PM May was reported over Bloomberg that she has accepted Parliament should be allowed to vote on her plan for taking Britain out of the European Union. This has led to a huge rally in the pound in early Asia in a recovery of last week's flash crash and "hard-Brexit" announcements by PM May over the preceding weekend before the flash crash.

UK PM May accepts Parliament vote over Brexit terms, GBP shorts run to the exits

EUR/GBP levels

Spot is presently trading at 0.9008, and next resistance can be seen at 0.9011 (Daily Classic PP), 0.9041 (Daily Classic R1), 0.9065 (Hourly 20 EMA) and 0.9074 (Daily Classic R2).

Support below can be found at 0.9005 (Daily Low), 0.8996 (Yesterday's Low - Classic PP), 0.8978 (Daily Classic S1) and 0.8951 (Hourly 100 SMA).

Long term trend (1-3 months): Analysts at Commerzbank have the 0.9250/.9375 area in their sights on additional downside in the pound and UK economy.