EUR/GBP: testing the 0.85 handle and fragile with weaker greenback

Currently, EUR/GBP is trading at 0.8506, down -0.89% on the day, having posted a daily high at 0.8587 and low at 0.8497.

US dollar index drops modestly, on the day, the Dow reached 20,000

EUR/GBP has dropped to test the handle of 0.85 as sterling continues to perform on the markets take that indeed the Supreme Court outcome was for a rapid triggering of Article 50 and PM May should be able to respect her self-imposed deadline of a late March declaration of formal exit proceedings. as noted by analysts at Scotiabank who are bullish on the pound, "We spot support now at 1.2400/05 (major) and expect dips to the mid/upper 1.24s will be well-supported by bargain hunters. The GBP rally should extend towards the early Dec high at 1.2770."

A conclusion on a “Hard Brexit” - Nomura

EUR/GBP levels

Spot is presently trading at 0.8507, and next resistance can be seen at 0.8512 (Daily Classic S2), 0.8545 (Hourly 20 EMA), 0.8547 (Daily Classic S1), 0.8558 (Weekly Classic S1) and 0.8565 (Yesterday's Low). Support below can be found at 0.8503 (Monthly Low), 0.8503 (YTD Low), 0.8497 (Daily Low), 0.8462 (Weekly Classic S2) and 0.8458 (Daily Classic S3). 

"EUR/GBP is weighing on the downside very near term having recently seen strong rejection from Fibo resistance and the top of the cloud at 0.8853," explained analysts at Commerzbank, adding, "We assume that 0.8852/53 is a short term top and intraday rallies should remain capped circa 0.8716/25. Initial support is the 6 month uptrend at 0.8490."