It is recommended to buy the pair today.

Today our focus will remain on Europe as we take a look at the EUR/GBP currency pair, which remains quite volatile amid the ongoing political issues in Europe and the UK.

The leading factor causing the weakness of the British pound sterling right now comes from the difficulties of Brexit. PM Theresa May is trying to find support for a deal that has come under heavy criticism within the British parliament, despite the assurances of the European Union that there will be no better deal offered. This week is dedicated to heavy debate and a crucial vote on the deal is expected on December 11. If the deal fails, it is almost certain we would get to see a hard Brexit.

Right now we don’t have any incentives for further euro growth. The ECB is being cautious: though they plan to end the QE program this month, the economic slowdown shown by the fundamental reports from the past few days indicates that the economy is not ready for a hawkish turn quite yet. The most important factor regarding the euro’s weakness currently remains the budgetary dispute with Italy. Today we expect several reports from the eurozone; the German factory orders were already released and were better than previously, though still below the forecast.

In terms of the daily chart, today we have a pivot point for the pair located at 0.8908, with the pair currently trading slightly below it. The daily support levels lie at 0.8885 and 0.8852. The daily resistances are at 0.8941 and 0.8964. The indicators of technical analysis are confident in recommending a strong buy in the daily term.