FxWirePro: EUR/GBP spikes higher, pound under pressure following Brexit deal and intensifying virus threat

EUR/GBP chart - Trading View 

EUR/GBP was trading 0.91% higher on the day at 0.9079 at around 17:10 GMT, slightly lower from session highs at 0.9091 hit earlier today.

The pair is extending bounce off 200-DMA support and close above daily cloud will fuel further gains.

British pound under immense pressure across the board following the Brexit deal and virus resurgence.

The UK saw 41,385 cases on Sunday with 357 deaths. The spread of the virus is intensifying offsetting optimism from the vaccination.

European Union ambassadors approved “the provisional application of the EU-UK Trade and Cooperation Agreement as of January 1, 2021”, as widely expected.

Analysts at Nordea Research opine  that “this is markets slowly but surely acknowledging that this is not an optimal deal for the UK”.

EUR/GBP trades with a bullish bias and close above daily cloud will support upside. Scope for gains till 0.9175 (trendline resistance).