Today our focus will remain on Europe as we take a look at the EUR/GBP currency pair. After spending most of April climbing, the trend got shaky and we have observed a decline over the past few days.
The British pound is currently relatively neutral. The United Kingdom’s government is still scattered over the Brexit issue. Prime Minister Theresa May is trying to reach an agreement with opposition leader Jeremy Corbyn in order to deliver an agreement that can gain Parliament’s approval. However, that would need to happen very soon if Britain wants to avoid participating in the European Parliamentary elections, which will take place in just three weeks. Today the Brexit uncertainty is a bit overshadowed by an upcoming announcement from the Bank of England regarding interest rates, but no changes are expected there.
The European single currency still finds itself in a tough spot. Data from the eurozone continues to disappoint investors, so naturally the euro is left drifting and its pairs are more influenced by the other currency in each. We expect the EUR to continue yielding ground to the pound.
In terms of the daily chart, today we have a pivot point for the pair located at 0.8588, with the pair currently trading slightly below it. The daily support levels lie at 0.8569 and 0.8556. The daily resistances are at 0.8601 and 0.8620. The indicators of technical analysis are giving us a strong sell recommendation.
