EUR/GBP jumps above 0.9250, highest since March as tensions between UK and EU escalate

• Pound drops even further after EU ultimatum to the UK.
• EUR/GBP gains 350 pips since Friday, heads for the highest close in five months.

The EUR/GBP accelerated to the upside following another warning from Brussels to London regarding the Brexit treaty. The pair is trading slightly below 0.9250, at the strongest level since March 25.

The pound is trading at fresh lows across the board and is the worst performer of the day in the currency market. GBP/USD dropped below 1.2850 to the lowest in more than a month, while GBP/AUD fell under 1.1750 for the first time since July 2019.

The pressure intensified over the last hour after the European Union told the United Kingdom that if the Internal Markets Bill were to be adopted, it would violate the Withdrawal Agreement. The EU blamed the UK for damaging the trust between them.

Technical levels

The EUR/GBP is trading above 0.9250, and the next resistance level could be seen at 0.9300, followed by 0.9325 (Aug 2019 high). On the downside, now 0.9250 could become the immediate support followed by 0.9225 and 0.9175 (June high).