EUR/GBP pares early gains to 3-week tops, steady above 0.9100 mark

• EUR/GBP gains some follow-through traction, though lacked any strong follow-through.
• The optimism over a deal on the EU’s recovery fund underpinned the shared currency.
• A modest pickup in the British pound kept a lid on any strong gains, at least for now.

The EUR/GBP cross quickly retreated around 30 pips from three-week tops, albeit has still managed to hold with modest daily gains just above the 0.9100 mark.

Following the previous session's modest pullback and an early dip to the 0.9080 region, the cross managed to regain some positive traction on the first day of a new trading week. The uptick was exclusively sponsored by the optimism over a firm compromise on the EU's proposed coronavirus recovery fund.

It is worth recalling that hardliners were reportedly ready to accept €390 billion in grants and €360 billion in loans. However, the European leaders have failed to reach an agreement on the package aimed at aiding the region’s worst-hit economies. This, in turn, held the euro bulls from placing any aggressive bet.

Adding to this, a goodish pickup in the demand for the British pound further contributed towards capping any strong gains for the EUR/GBP cross. Given that negotiations are set to extend to a fourth straight day on Monday, the incoming headlines will play a key role in influencing the pair's momentum on Monday.

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