EUR/GBP: fresh highs through 0.87 capped

Currently, EUR/GBP is trading at 0.8683, down -0.08% on the day, having posted a daily high at 0.8766 and low at 0.8677.

EUR/GBP has been better bid at the start of the year with hard Brexit concerns weighing heavily on the pound that took a hard fall at the start of this week and breaking key technical levels on the downside, propelling the cross to score short lived fresh daily highs where otherwise, the cross has been finding support at the 7 month uptrend at .8433. A break there to the downside on renewed concerns about the Italian banking crisis and negative outlooks for the EU as a while with the pending elections, first France in April, the euro could come under scrutiny again and a break below parity vs the greenback would be a life line to the bears of the cross.

"We maintain a longer term negative bias and below 0.8427, we look for a retest of the 200 day ma at 0.8362 recent low at 0.8304 - Failure here will trigger another leg lower to the 0.8170 50% retracement and only above 0.8725 will neutralise our immediate outlook," explained analysts at Commerzbank.

EUR/GBP levels

Spot is presently trading at 0.8684, and next resistance can be seen at 0.8691 (Daily Open), 0.8691 (Monthly High), 0.8691 (Weekly High), 0.8691 (YTD High) and 0.8700 (Hourly 20 EMA). Support below can be found at 0.8682 (Weekly Classic R2), 0.8677 (Daily Low), 0.8659 (Daily Classic PP), 0.8630 (Daily 100 SMA) and 0.8629 (Weekly Classic R1).