EUR / GBP clings to modest gains near 0.9100 level, lacks continuation

• EUR / GBP is moving higher for the fourth day in a row on Tuesday.
• Uncertainties around Brexit weigh on the GBP and support the pair’s upward move.
• The euro is struggling to gain traction and limits the further gains of the EUR / GBP.

The crossing EUR/GBP moves with a slight positive bias at the start of the European session on Tuesday, with the bulls making a fresh attempt to take advantage of the momentum beyond the 0.9100 level.

The cross has built on the previous day’s good bounce of around 75 pips, from levels just below the 100-day SMA, and gained some traction on Tuesday. The rally marks the fourth consecutive day of positive movement And it is due exclusively to the relatively underperformance of the British pound against its European counterpart.

The pound began to lose traction on Monday after the British Brexit negotiator, Michel Frost, said there is no point in resuming the talks. Furthermore, UK Brexit Minister Michale Gove stated that UK is poised for an ‘Australian-style’ exit from the Union, resurfacing concerns about a hard Brexit at the end of the transition period.

Meanwhile, EU Brexit negotiator Michel Barnier, confirms that the EU remains available to intensify Brexit negotiations. As trade talks between the UK and the EU had stalled amid disagreements over access to fishing and skills issues, conflicting comments increased uncertainties related to Brexit and affected the GBP.

On the other hand, the common currency has moved within a tight range and has not provided any additional momentum to the EUR / GBP cross. This, in turn, has been seen as the only factor limiting the gains of the crossover, so it is prudent to wait for some subsequent purchases before positioning for any further bullish movement in the short term.

There is no major economic data release on Tuesday, neither from the eurozone nor from the UK. Therefore, Brexit-related news will continue to play a key role in influencing sterling price dynamics and generating some short-term trading opportunities around the EUR / GBP cross.