EUR/GBP falls to a fresh low on the day, back under 0.8900

The drop is seeing sellers start to take aim at the September lows @ 0.8866-74 now, with the 23.6 retracement level @ 0.8867 also a support level to watch.

Since rising to near 0.9300 two months ago, the pair has been on a steady decline since as sellers gradually seized back control with the break below the 200-day MA (blue line) yesterday extending the downside momentum.

From a technical perspective, a break below the September lows leaves very little in the way of a move towards 0.8700 next.

That said, pound buyers will have to be mindful of Brexit risks this week as negotiations are still ongoing in London. But if that plays out for the better, it could prove to be a helping hand in shoving the pair towards the April to May lows.

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