Today our focus will remain on Europe as we take a look at the EUR/GBP currency pair. The pair has been trading in an extremely narrow range, forming a more or less flat trend in November.
At the moment, the British pound is entirely under the influence of political developments in the United Kingdom. Even the Bank of England appears reluctant to change its approach before the results of the general elections are known. Throughout the election campaign so far, the GBP has been able to strengthen due to polls pointing to a likely Conservative win on December 12. This would solidify Boris Johnson’s majority in Parliament and allow the Prime Minister to pass his withdrawal bill successfully, and “get Brexit done,” as he has been saying for a while. Though the bill has been criticized as being worse for the United Kingdom than Theresa May’s, a Conservative win will at least eliminate the uncertainty regarding Brexit and provide a conclusion to this chapter of UK history.
In Europe, things continue the same as always. Last week proved good for the euro, as many fundamental reports came in better than expected. Nevertheless, for now there is nothing major coming up on the economic calendar, besides ECB announcements, but those will likely not contain any surprises. For now, at least, the euro is under the influence of the other currency in each pair.
In terms of the daily chart, today we have a pivot point for the pair located at 0.8571, with the pair currently trading below it. The daily support levels lie at 0.8559 and 0.8547. The daily resistances are at 0.8583 and 0.8595. The indicators of technical analysis recommend a strong sell in the daily term.
