EUR/GBP climbs to 4-1/2 month tops, eyeing 0.8700 mark
- EUR/GBP reverses an early dip and turns higher for the fourth consecutive session on Monday.
- News of fiscal easing measures from Germany provided a goodish lift to the common currency.
- Fears of a no-deal Brexit, BoE’s readiness to act weighed on the pound and remained supportive.
The EUR/GBP cross jumped to 4-1/2 month tops during the early European session on Monday, with bulls now eyeing a move towards reclaiming the 0.8700 round-figure mark.
A combination of factors assisted the cross to reverse an early dip to sub-0.8600 levels and build on its recent strong positive momentum for the fourth consecutive session on the first day of a new week.
EUR/GBP boosted by a combination of factors
The buying interest around the shared currency picked up some additional pace in the last hour following the news that Germany is mulling a way to loosen its rigid limits on spending and stimulate the economy.
On the other hand, the British pound remained on the defensive amid persistent uncertainty about the future UK-EU trade relationship and concerns that Britain might crash out of the EU later this year.
This coupled with the latest announcement by the Bank of England, saying that it is ready to step in and will "take all needed steps to protect stability" exerted some additional pressure on the sterling.
With Monday's positive move, the cross has rallied over 400 pips from sub-0.8300 levels touched on February 18 and now seems poised to continue with its bullish trajectory ahead of the final Eurozone/UK PMI prints.
Technical levels to watch