EUR/GBP consolidates near 3-year highs

The pound slumped across the board on Monday after Prime Minister May said the UK would start the Brexit process by the end of March, sending EUR/GBP to a post-referendum high.

EUR/GBP gapped higher and rallied to its highest level since August 2013 at 0.8746 before losing momentum. The subsequent pullback was contained by the 0.8710 zone, confining the pair to a sideways phase. At time of writing, EUR/GBP is trading at 0.8734, still up 0.81% on the day.

EUR/GBP levels to consider

In terms of technical levels, next resistances could be found at 0.8768 (Aug 2013 high) and 0.8800 (psychological level) ahead of 0.8793 (Mar 12 2013 low). On the other hand, supports line up at 0.8633 (10-day SMA), 0.8603/00 (Sep 30 low/psychological level) and 0.8562 (Sep 23 low).