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EUR/GBP consolidates in a range, around mid-0.8900s

  • EUR/GBP was seen oscillating in a range around mid-0.8900s on the last day of the week.
  • A modest bounce in the common currency helped limit any further downside for the cross.
  • Brexit uncertainties might keep the GBP bulls on the defensive and extend some support.

The EUR/GBP cross remained confined in a narrow trading band, around the 0.8950 region through the mid-European session on Friday.

The cross struggled to gain any meaningful traction on the last trading day of the week and was seen consolidating its recent losses to over three-week lows. However, a modest rebound in the shared currency extended some support to the EUR/GBP cross and helped limit the downside, at least for now.

Meanwhile, the British pound failed to capitalize on its strength that came after the UK Chancellor Rishi Sunak announced £30 billion stimulus package. As investors digested the UK government’s latest plan, persistent Brexit uncertainties kept a lid on any further gains for the sterling.

It is worth recalling that the European Union's executive arm on Thursday said that talks on the post-Brexit relationship have made little progress and there are still significant differences on a number of important issues. This, in turn, should keep the GBP bulls on the defensive.

The cross now seems to have found some support near the 0.8945 region and in absence of any major market-moving economic releases, investors might refrain from placing any aggressive bets. This, in tur, should prolong the pair's subdued/range-bound price action on the last day of the week.

Technical levels to watch

 

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