EUR/GBP rises further toward 0.9100, breaks downtrend line

• Pound under pressure on lack of agreement between the EU and UK.
• EUR/GBP having daily gains in almost three months.

The EUR/GBP pair is rising sharply on Wednesday, accelerating the move higher boosted by a weaker pound and also by technical factors. It peaked at 0.9083, the highest level since October 26.

As of writing, it is trading at 0.9055/60, two hundred pips above last week lows. The move higher is being driven by a decline of the pound across the board affected by the Brexit drama.

Negotiations continue between Brussels and London. Michel Barnier, the European Union chief negotiator, signalled neither optimism nor pessimism about the possibility of a deal.

The UK authorize the Pfizer /BioNTech vaccine, the first Western nation to do so. It is approved for use next week. The announcement boosted the pound versus the US dollar only for a few hours.

Breaking key dynamic resistance

The EUR/GBP is rising above a three-month downtrend line that was offering resistance around 0.8990/0.9000. The breakout boosted the euro further.

A daily close around current levels would point to more gains. The next strong barrier is located between 0.9130/50.

The euro has moved further away from the medium-term support around 0.8860/70. A break lower should lead to considerable losses.