EUR/GBP extends gains on ECB speculations

A report mentioned that the European Central Bank discussed whether can raise rates before the massive purchase program ends and boosted the euro across the board. EUR/GBP broke above 0.8740 and jumped to 0.8779, hitting the highest level since January 17. 

The pair is hovering near the highs consolidating a weekly gain of more than a hundred pips. The euro is rising for the second week in a row and from the levels it had two weeks ago is up more than 300 pips. 

While the euro is among the top performers of the las five days, boosted first by Draghi’s press conference and also by today’s reports, the pound continues to be affected by Brexit fears. 

Theresa May could trigger Article 50 as early as Tuesday - Standard 

ECB said to have discussed whether rates can rise before QE ends - BBG

Technical levels

To the upside, resistance might be seen at 0.8775/80 (Mar 10 high), 0.8800 (psychological) and 0.8850 (January highs). On the downside, support could be located at 0.8735/40, 0.8695 (daily low) and 0.8650 (Mar 08 and 09 low).