EURGBP on its way to a new annual high?
According to a recent survey by YouGov on behalf of the Times, Boris Johnson leads the race for the post of British Prime Minister. His lead is said to be 48 points. According to that, he would get 74 percent of the votes while his leading rival, Jeremy Hunt, would have only 26 percent of the votes.
It remains to be seen how the new head of government will deal with the Brexit issue — „Deal or no deal?“, that is the question here.
The EURGBP currency pair has risen sharply since May 6. However, the pair appears to have found a barrier, in the £0.898 range, that has stopped the upward trend of the currency pair for now.
The MACD oscillator has been showing mixed signals since early June. Although the MACD line is above its zero lines, it has formed a bearish cross. However, this signal was not always evident during the last weeks of trading, as the MACD line repeatedly tried to cross its trigger line to the upside. The MACD line touched its trigger line again and again without crossing it upwards. Slowly but steadily, both lines are moving south.
If the bulls continue to dominate the market and manage to jump above the £0.898 zone, the next resistance could be at the £0.902 level. If the highs in the structural region of the turn of the 2018/19 year at £0.907 are breached upwards, the next significant structural level, at around £0.914 could offer resistance to the market.
Downwards the zone at £0.894 could provide the first support to the market. However, if the bulls are ready for a breather, the £0.889 region could provide further support. If the bears push the market further down, the £0.880 and £0.873 zones could provide more support. If the market breaks through here, a deeper decline may be possible.
EURGBP Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst, ActivTrades
*The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication. All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided.