• EUR/GBP remains under pressure on GBP-buying.
  • The cross stays close to 5-month lows in the 0.8570 region.
  • Decision on another ‘meaningful vote’ expected later.

The continuation of the bid note around the quid is keeping EUR/GBP well under pressure in the area of (just above) 5-month lows on Monday.

EUR/GBP focused on Brexit, UK politics

The European cross remains under heavy pressure after the Sterling has quickly left behind the events from last Saturday, when the UK Parliament voted against PM B.Johnson’s Brexit deal, forcing him at the same time to write a letter (unsigned) to the EU leaders asking for a delay of the October deadline.

In the meantime, J.Bercow, the Speaker of the House of Commons, is expected to announce later today whether MPs should have another ‘meaningful vote’ on Johnson’s Brexit bill.

Meanwhile, in Brussels, the European Commission said it is assessing another extension of the Brexit deadline (likely to end of January 2020).

EUR/GBP key levels

The cross is up 0.07% at 0.8603 and faces the next resistance at 0.8667 (78.6% Fibo of the May-August rally) followed by 0.8817 (200-day SMA) and finally 0.8906 (50% Fibo of the May-August rally). On the other hand, a drop below 0.8574 (monthly low Oct.17) would expose 0.8488 (monthly low May 6) and then 0.8474 (2019 low Mar.12).