Sterling strength on Brexit news lifts GBP/USD and pushes down EUR/GBP

As the UK and EU move towards a deal, the pound has been given further impetus, gaining ground against the dollar and the euro.

GBP/USD climbs on Brexit deal news

It looks like we may, finally, get a deal on Brexit, and as a result the pound is once again on the up against the dollar. The GBP/USD price has rallied back to the $1.357 area that marked the closing highs last week, and further gains target $1.366.

Dip buyers came in strong last week down towards $1.32, creating a higher low, and the uptrend of the past eight months remains in place.

EUR/GBP tests recent lows

News of a Brexit deal have bolstered sterling, pushing EUR/GBP back to the €0.90 level that has marked the low since the beginning of the month.

This month has seen several long wicks on the daily chart, as sellers continue to bear down on the price and keep it from rallying. A move below €0.895 would certainly mark a more bearish development, and bring €0.885 into view.

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