EUR/GBP gaps higher, sits above 0.88 handle

EUR/GBP cross clocked a high of 0.8851 in early Asia as GBP was hammered on heightened fears of hard Brexit. 

Major trend line hurdle is history

The descending trend line drawn from Oct 11 high and Nov 2 high offered a strong resistance on Friday, thus limiting the upside at 0.8768 levels. However, the gap up open today at 0.8836 means the trend line hurdle is now a support. 

The currency was last seen trading around 0.8820 levels. Sterling is attempting a recovery, although it could be short lived if fresh offers hit the GBP pairs in early Europe. 

EUR/GBP Technical Levels

A break below 0.88 (zero figure) could set the pair on track towards 0.8768 (Fri’s high), under which the losses could be extended to 0.8719 (5-DMA). On the higher side, breach of the resistance at 0.8859 (Nov 3 low) would expose hurdle at 0.89 (zero figure). A violation there could see the pair test supply around 0.90 handle.