- The euro rallied to a 2-week peak against the British pound after Prime Minister Boris Johnson set out tough terms for Brexit talks with the European Union.
- PM Johnson stuck a tough tone on not to adhere to the bloc’s rules and regulations, rekindling fears Britain would reach the end of an 11-month transition period without agreeing a trade deal.
- EUR/GBP is trading 0.1 percent up at 0.8510, having hit a high 0.8537 earlier, its highest since January 20.
- Technical indicators are bullish: RSI strong at 53.55, Stochs are biased higher and MACD supports upside.
- Immediate resistance is located at 0.8553, a break above could take it near 0.8577.
- On the downside, support is seen at 0.8484 (21-DMA), a break below could drag it till 0.8472.
Recommendation: Good to buy on dips around 0.8505, with stop loss of 0.8484 and target price of 0.8553.