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- Pounds soars as Brexit are set to restart formally.
- EUR/GBP drops on Wednesday a hundred pips, approaches monthly lows.
The EUR/GBP dropped further during the last hours after Bloomberg report that Brexit talks were set to restart, aiming for a deal by mid-November. The pair fell to 0.9016, reaching the lowest level since October 15. It remains near the lows under pressure.
The pound jumped across the board after the report, extending daily gains. The report mentioned that a decision could come in the next hours, with negotiators ready to resume talks to find a deal by November 13.
The decline in EUR/GBP is the most significant in months. The area above 0.9000 so far capped the slide. A break under 0.9000 could open the doors to more losses. The next support might be seen at 0.8965, followed by 0.8935.
On Tuesday, EUR/GBP offered some bullish signs by surpassing the 20-day moving average that stands at 0.9085. Price is back below with the momentum now favoring the downside.