The pound retreats as Britain awaits the EU’s nod to extend the trade grace period for Northern Ireland. The euro has consolidated its recent gains after closing above 0.8580 with 0.8565 establishing itself as a support level, the base of the latest rally.
Price action is testing again the falling trendline which has been acting as a key resistance.
The crowded trade is heavily skewed to the sell-side. A bullish breakout above 0.8610 would prompt sellers to cover, building momentum for a potential reversal.
