EUR/GBP: better bid with eyes on 0.88 handle on the wide

Currently, EUR/GBP is trading at 0.8647, up 0.18% on the day, having posted a daily high at 0.8673 and low at 0.8625.

EUR/GBP has been trading with a bullish bias within the ascending channel from kate Fed lows at 0.8402 having recently peaked at 0.8668 while pull-backs have been supported at the 20 sma on the hourly sticks at 0.8637. The euro picked up some demand when Le Pen was dropping back in the polls at the end of last week and when Yellen's caveat for a rate hike was expressed as gradual hikes there after the next hike, which may or may not be March. Also, the ECB's next move is likely to be a taper, so that too is supporting the bid along with moments of risk-off sentiment and the carry.  The UK has a busy week ahead this week with the housing, IP and trade data that are due while Chancellor Hammond’s budget on Wednesday and Brexit Minister Davis’s questions in parliament on the political front. 

EUR/GBP levels

Analysts at Commerzbank explained that EUR/GBP  has eroded its 5-month downtrend and they will head to the side lines as they suspect that they will see further near-term strength. "The break higher has introduced scope to the Fibo resistance and the recent high at 0.8852/53. "We assume that .8852/53 is a short-term top for the market. Very near term we note 13 counts on the 60 and 240-minute charts and will attempt small shorts very near term."

EUR/USD hits fresh lows under 1.0580