EUR/GBP gains further beyond 0.88 handle, hits 1-1/2 month tops

   •  GBP weighed down by renewed Brexit concerns, over Irish border issue.
   •  Technical buying above 0.8800 handle supportive of the bullish momentum.
   •  Weaker sentiment around EUR now seemed to cap additional gains.
 
The British Pound extended its weakening trend across the board, lifting the EUR/GBP cross to 1-1/2 month tops in the last hour. 

The cross built on Friday's strong up-move from sub-0.8700 level triggered by dismal UK data that showed the economy grew at its slowest pace in more than five years and continued gaining some positive traction at the start of a new trading week. 

Renewed Brexit jitters, following the European Union (EU) Chief Negotiator Michel Barnier’s latest comments on the Irish border issue, kept exerting downward pressure on the British Pound and remained supportive of the pair's up-move. 

Today's up-move could also be attributed to some follow-through technical buying, especially after Friday's breakthrough the 0.8785-90 supply zone, albeit remained capped on the back of a weaker tone surrounding the shared currency. 

In absence of any major market moving economic data from the UK, traders will look forward to the German Prelim CPI print in order to grab some short-term opportunities. 

Technical levels to watch

Immediate resistance is pegged near 0.8835 level and is followed by the 0.8850 hurdle, above which the cross seems more likely to be headed towards reclaiming the 0.8900 handle. 

On the flip side, the 0.8800 handle now seems to protect the immediate downside, which if broken might accelerate the slide towards 0.8775-70 intermediate support ahead of 0.8740 level.