EUR / GBP returns part of the initial gains and falls back to the 0.9070 region

• EUR / GBP regains some positive traction on Tuesday, although it lacks a strong following.
• Brexit-related uncertainties weigh on the GBP and support the pair’s bullish move.
• The configuration warrants caution before positioning itself directionally amid the absence of economic releases.

The crossing EUR/GBP has moved higher at the start of the European session on Tuesday, reaching an intraday maximum in the region of 0.9080-85. At the time of writing, the crossover returns part of the initial earnings and remains virtually unchanged on the day around the 0.9070 level.

Following good price movements in both directions the day before, the cross managed to regain some positive traction on Tuesday, supported by the outperformance of the common currency compared to its British counterpart. Despite growing concern about the continued rise in new coronavirus cases, investors appear reluctant to buy US dollars ahead of the November 3 US presidential election. This, in turn, has provided a modest boost to the euro.

On the other hand, lingering Brexit-related uncertainties have led to a moderate price action around the British pound and have contributed to the positive intraday movement of the EUR / GBP pair. It is worth informing that the EU chief negotiator, Michel Barnier, expects to stay in the UK until Wednesday, raising hopes for a last-minute Brexit deal. However, investors remain skeptical of a deal amid disputes over key points.

There is no major economic data release on Tuesday. Therefore, the incoming news about Brexit will continue to play a key role in influencing the British pound and could generate some significant trading opportunities around the EUR / GBP.

For now the cross has remained within the range of the previous daySo it is prudent to wait for a sustained move in either direction before opening aggressive positions.