EUR/GBP jumps to daily tops, back above mid-0.8900s post-ECB

• The shared currency caught some fresh bids after the ECB increased PEPP by €600 billion.
• The British pound remained depressed amid fresh Brexit jitters and remained supportive.

The EUR/GBP cross reversed a mid-European session dip to the 0.8930 region and moved back closer to the top end of its daily trading range post-ECB announcement.

The shared currency caught some fresh bids after the European Central Bank (ECB) decided to expand the size of its Pandemic Emergency Purchase Programme (PEPP) by €600 billion. The increase in the size of the PEPP was higher than market expectations and the positive surprise prompted some fresh buying around the euro pairs.

On the other hand, the British pound was pressured by the rising odds of hard Brexit. The market concerns resurfaced after the BoE Governor Andrew Bailey reportedly told banks to step up plans for the UK to leave the European Union without a trade deal. This comes on the back of the lack of progress in the ongoing Brexit talks, which might undermine the sterling and provide an additional boost.

Moving ahead, market participants now look forward to the ECB President Christine Lagarde's comments at the post-meeting press conference, which will now play a key role in influencing the near-term sentiment surrounding the common currency.

Technical levels to watch