EUR/GBP: bulls back in control, start of a new beginning? Eyes on EUR/USD long daily wicks, (bullish)

• EUR/GBP has been quite a game layer on Wednesday.
• The cross has been whipsawed in the market today on conflicting Brexit headlines.

EUR/GBP has been as low as 0.8955 from a high of 0.9052. EUR/GBP is currently trading at 0.9011 and below the hourly SMA cluster.

So, to start with, the euro was sent back to the 1.1540's on risk-off trade in the European session which weighed on the cross as well to take it a touch below 0.90 the figure. However, bulls picked up the cross there and the price rallied to 0.9051 when the euro bulls stepped in in droves and took it back to 1.1591. The pair then went on to a high of 1.1639 as cable ripped on reports that the British and German governments have abandoned key Brexit demands. 

However, a German government spokesman said that the government position on Brexit was unchanged and that the government has full trust in Barnier - (Cable fell from 1.2957 to 1.2876 and the cross rallied back to 0.90 the figure). 

Meanwhile, the focus is on Italy. Analysts at TD Securities noted that risks have been abating amid recent rhetoric from the Italian government about abiding by EU budget rules: "If we continue to get market-friendly comments, we expect some of the risk premium in EU rates to get priced out."

EUR/USD turning bullish? 

The euro has turned bullish, both technically and somewhat fundamentally on the Italian basis and in fact, should the market turn less hawkish over the Fed, the dollar bulls could soon find itself in trouble, especially if NAFTA is resolved anytime soon and should there be a change of sentiment with respect to Cina/US trade relations. 

• EUR/USD bulls back in control (despite minor Brexit headline set-back to 1.1608) - target set cloud base 1.1672

EUR/GBP levels

Analysts at Commerzbank explained that EUR/GBP saw a strong recovery off the 0.8935 level and has so far halted at 0.9035:

"This has neutralized the immediate outlook. Failure at 0.8935 would signal losses to the 0.8912 55 day ma and then the 0.8855 2nd August low. Where are we wrong? Above 0.9101 would target 0.9161 Fibonacci resistance and above here would introduce scope to the 0.9295 2009-2018 downtrend line."