Today our focus will remain on Europe as we take a look at the EUR/GBP currency pair. After a steady climb, the rates became more or less flat over the past week.
The British pound is seriously struggling due to the latest Brexit developments. After Theresa May’s cabinet failed to provide a feasible Brexit plan that parliament could back, the Prime Minister said she will leave office on June 7. There are speculations who will succeed her and what her successor’s take on Brexit will be. According to the polls, the current favorite is Boris Johnson, who is in favor of a hard Brexit. Needless to say, the political chaos in the United Kingdom is not really giving the pound a chance to stabilize at the moment.
The euro is having trouble strengthening in general. The economic climate in Europe is not ideal: fundamental disappoint investors more often than pleasing them, there are fears of a trade conflict with the United States, and the ECB is maintaining a soft monetary policy to support growth. Right now there simply are factors against both the EUR and the GBP, and the rate changes a little every day based on the reports.
In terms of the daily chart, today we have a pivot point for the pair located at 0.8816, with the pair currently trading slightly below it. The daily support levels lie at 0.8800 and 0.8782. The daily resistances are at 0.8834 and 0.8850. The indicators of technical analysis are giving us a strong buy recommendation in the daily term.
