- The euro soared to an over 6-week peak against the British pound as Britain confirmed a hardline stance on trade talks with the EU.
- Moreover, the selling pressure around the British currency intensified as disappointment grew that the new finance minister may not increase spending as much as expected.
- On Thursday, senior minister Michael Gove told parliament that the UK would not trade away its sovereignty in pursuit of a trade deal with the EU.
- EUR/GBP is trading 0.3 percent up at 0.8561, having hit a high 0.8574 earlier, its highest since January 15.
- Momentum indicators are bullish: RSI strong at 64, MACD supports upside and Stochs are at oversold levels.
- Immediate resistance is located at 0.8589, a break above could take it near 0.8605.
- On the downside, support is seen at 0.8513, a break below could drag it till 0.8504.
Recommendation: Good to buy on dips around 0.8538, with stop loss of 0.8513 and target price of 0.8589.