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EUR/GBP faded on split Brexit polls in UK

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    EUR/GBP met supply at 0.7844 after an opening bullish gap on the weekend news when Sterling came under pressure in a polarized looking referendum on whether to remain in or leave the EU. Some senior cabinet ministers, the Mayor of London and up to 150 of 330 Conservative MPs are reported to be in favour of leaving the EU.

    "It does feel like the global political situation is rather clouded at present and that this murkiness is never a great thing for those hoping for market calm," explained analysts at ANZ.

    However, a deal was eventually reached for the conditions of the UK staying in the EU and David Cameron has subsequently called for a referendum on 23rd June. The recent polls show the public split at roughly 50:50, with the outcome likely to have considerable implications for the UK economy. EUR/GBP is likely to be a main focus leading into June, especially on surprises such as the Boris Johnson story over the weekend and as the hype in the media increases.

    EUR/GBP levels

    Technically, EUR/GBP made a move to the 0.7844 the high on 17th Feb, which has again capped the cross in a continued recovery attempt of the 0.7897 and 11th Feb downtrend. The pivot is located at 0.7761. Spot is approaching the 20 sma on the hourly sticks of 0.7792 ahead of S1 at 0.7743 and S2 at 0.7724. A break through these levels and below the cluster of ma's on the same time frame, recent lows of 0.7707.
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