EUR/GBP leaps to fresh tops near 0.8850 as Pound collapses

• The European cross moves higher to the mid-0.8800s.
• Brexit jitters keep weighing on the British Pound.
• Resignations in May’s Cabinet triggered the sell off in GBP.

The ongoing and sharp sell off hitting the Sterling is lifting EUR/GBP to fresh multi-day tops in the mid-0.8800s.

EUR/GBP in 2 week tops

The European cross is adding to yesterday’s gains and advances to fresh 20-week peaks in the boundaries of 0.8850, at the same time flirting with the critical 200-day SMA, today at 0.8833.

The cross is gathering further steam following disappointing news on the Brexit front, where some members of PM May’s Cabinet resigned amidst a generalized opinion against the recently announced draft deal.

In the data space, and adding to GBP’s weakness, UK’s Retail Sales came in below expectations for the month of October, contracting at a monthly 0.5% and expanding 2.2% YoY. In addition, Core sales dropped 0.4% inter-month and rose at an annualized 2.7%.

Adding fuel to the fire, expectations of another rate hike by the Bank of England in 2019 now appears almost vanished.

EUR/GBP key levels

The cross is now gaining 1.49% at 0.8836 facing the next up barrier at 0.8849 (55-day SMA) seconded by 0.8880 (100-day SMA) and then 0.8941 (high Oct.30). On the other hand, a breach of 0.8655 (low Nov.13) would aim for 0.8619 (2018 low Apr.17) and finally 0.8256 (200-week SMA).