EURGBP has been enjoying a solid ride higher in past 24 hours 2 MarchNot really any rocket science or technical analysis needed here. EURUSD has very large option-related support at 1.2150 which held yesterday’s drop and at 1.2250 which added to the rally power. Any Italian election risk cast to one side for the moment.
GBPUSD has May’s Brexit speech at 13.30 GMT to provide some uncertainty and large option interest at 1.3800 today helping to cap rallies.
Combine the two and hey presto EURGBP moves up to 0.8952 before running into some sellers and longs understandably taking some money off the table.
Expect demand between 0.8900-20 still with EURUSD also likely to find option-defence demand around 1.2280. EURGBP