EUR/GBP gyrates around the 0.8600 handle, focus on Brexit

• EUR/GBP exchanges gains with losses around 0.8600.
• The cross breaches the 200-week SMA, today at 0.8643.
• The European Parliament discusses Brexit deal later today.

EUR/GBP remains under heavy pressure in the area of 5-month lows around the 0.8600 handle on Tuesday.

EUR/GBP keeps the attention on upcoming vote

The European cross is now attempting a consolidative move in the lower end of the recent range near the 0.8600 neighbourhood, or multi-month lows, always looking to Brexit headlines for direction and with alternating trends in both the quid and the shared currency.

It is worth noting that the cross has recently broken below the 78.6% Fibo retracement of the May-August rally and the 200-week SMA in the 0.8640 region, both events collaborating further with the negative stance in the cross.

Brexit-wise, UK PM B.Johnson will open a debate on his Brexit deal later today, although all the attention is expected to be on the vote on the bill’s timetable. Johnson’s deal will also be discussed in the European Parliament later in the day.

EUR/GBP key levels

The cross is up 0.01% at 0.8603 and faces the next resistance at 0.8667 (78.6% Fibo of the May-August rally) followed by 0.8815 (200-day SMA) and finally 0.8906 (50% Fibo of the May-August rally). On the other hand, a drop below 0.8574 (monthly low Oct.17) would expose 0.8488 (monthly low May 6) and then 0.8474 (2019 low Mar.12).