EUR/GBP buyers make a break for it
This is what is weighing on the pound on the session, as we see cable also ease towards the 1.2300 level currently. EUR/GBP has been a little stubborn over the past few sessions near the 0.9000 handle but buyers are finally finding a way through.
The move higher here sees price climb to fresh highs above 0.9000 since 27 March.
A key spot to watch now will be the 38.2 retracement level @ 0.9035, which may offer some resistance to the pair in the sessions ahead.
The month-end Buba demand may be at play here but technically, it has been hard to fight a break in EUR/GBP since the move above the 7 April high @ 0.8865.
The risk for buyers now is if they disappoint and fail to hold a daily move above 0.9000.
Otherwise, there is still reason for the pair to keep chasing a move higher with the pound set to face Brexit risks in the coming weeks.
That said, the euro does have its own risks to be mindful about with the EU recovery fund proposal still far from being a guarantee at this stage.
