Today our focus will remain on Europe as we take a look at the EUR/GBP currency pair. As of the beginning of this week, the price of the pair has been steadily climbing.
The British pound is under pressure due to Brexit. With a lack of a clear agreement in Parliament regarding the United Kingdom’s divorce from the EU, it seems that the UK will not be able to leave before the elections for European Parliament, which are in less than two weeks. This means the UK might actually have to use up all of the extension granted by the EU, contrary to the Prime Minister’s plans to leave as early as possible. With mounting pressure on the government to deliver on their promises, the sterling is losing positions. Tomorrow we expect data on the GDP from the UK, which will be very important.
The European single currency is still in a bad spot. Fundamental reports continue to disappoint. Today we would hear from the President of the European Central Bank, Mario Draghi, and the event will likely have an impact on the euro as it would tell us more about how the ECB currently feels about the economy. Moreover, there are fears of a trade conflict with the United States that are currently also pressuring the euro, especially considering that the trade agreement between the US and China seems to be falling apart.
In terms of the daily chart, today we have a pivot point for the pair located at 0.8597, with the pair currently trading above it. The daily support levels lie at 0.8570 and 0.8533. The daily resistances are at 0.8634 and 0.8661. The indicators of technical analysis are giving us a sell recommendation in the daily term.
