EURGBP breaks above 0.8800, hits four-week highs

• Pound under pressure, cable falls under 1.1400.
• EURGBP heads for highest daily close since October 11.

The EURGBP rose further during the American session and strengthened the rally after breaking above 0.8800. The cross peaked at 0.8820, reaching the highest level since October 11.

The pound is among the worst performers in the G10 space on Wednesday. The currency remains vulnerable after two months of political and economic tensions in the United Kingdom. The caution tone across financial markets is not helping the pound. The Dow Jones is falling by 0.87% and the Nasdaq drops by 1.25%.

The slide of GBPUSD below 1.1400 added to the broad-based slide of the pound. As of writing, Cable is trading at 1.1370, the lowest in two days, down more than 150 pips.

“Over the coming weeks, we would expect GBP investors to be focused on the impact of the November 17 Autumn Statement, the ability of PM Sunak to hold the Tory party together, the outlook for UK growth/recession and BoE interest rates.  We would expect issues surrounding the (Northern Ireland) protocol only to have a clear impact on GBP as any related deadlines approach.  We are yet to be persuaded to alter our bearish view on the pound and maintain a 3-month forecast of EUR/GBP 0.89”, said analysts at Rabobank.

Technical levels