EURGBP Rate Points Lower as Virus Fear Recedes

Summary:

The EURGBP was trading lower on Wednesday as sterling gains on hopes of a Brexit deal. An agreement is still not looking likely.

The EURGBP was trading lower on Wednesday as sterling gains on hopes of a Brexit deal. An agreement is still not looking likely but traders are acting with caution incase there is a sharp move. Despite the small range trading over the past months, there is still the potential for volatility and many traders will be positioning ahead of their Christmas break.

The EU has declined P.M. Boris Johnson’s latest offer on fishing, which has been one of the key obstacles to an agreement. Johnson spoke to the EU Commission President twice on Monday in an effort to break the deadlock. The U.K. offered a deal that would see them take a 30% share in value of the EU catch in British waters, which was a big reduction in the 60% demands of recent weeks.

The French government lifted restrictions on truck drivers entering from the U.K., but they must now produce a negative test for Coronavirus taken within the last three days. The early-week fears of a new strain of the virus in the U.K. have now given way to fears that the virus will spread further into Europe.

EURGBP Technical Outlook

EURGBP is moving below 0.9100 and there is a chance that the pound can move to the 50-day moving average at 0.9000. The resistance is at 0.9175 where it has been since September. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.