EUR/GBP is trading around the highest levels since 2009, in the immediate aftermath of the financial crisis. The cross reflects the weakness of the pound in light of Brexit uncertainty and the resilience of the euro ahead of Draghi’s expected pre-announcement of QE tapering.
0.9237 has been the highest level seen so far in 2017. It is the immediate level of resistance. The October 2009 high of 0.9410 is the next cap to watch, but the road to that level could be rough. The ultimate high was seen earlier that year: 0.98. Perhaps needless to say, parity between the euro and the pound is looming above.
Looking down, we can see clear levels. The round number of 0.92 was a low point earlier in the day. 0.9178 capped the pair before it made the latest, impressive break. 0.9150 served as resistance just before the previous break.
More: EUR/GBP: Mind The Divergence – Where To Target? – SocGen
Here is the one-hour chart:
