EUR/GBP rally stalling at 0.85 handle post French election R1 result
|EUR/GBP, within a day range of 0.84452 - 0.85089 so far, is currently trading at 0.8498 and up 1.5% on the back of the French elections first round and positive result.
The far-right leader Marine Le Pen and the centrist Emmanuel Macron have won the first round of voting in French presidential elections. Le Pen was receiving 25.1% of the vote vrs Macron with 21.3% according to the latest French interior ministry count. Interior ministry says 9.2m votes were counted as follows:
- Le Pen 25.1%
- Macron 21.3%
- Fillon 19.7%
- Melenchon 17.9%
The two saw off a strong challenge from centre-right François Fillon and the hard-left Jean-Luc Mélenchon, according to the projections and the pair now face a run-off vote on 7 May.
EUR/GBP levels
EUR/GBP near-term outlook – negative: EUR/GBP eroded a major resistance offered by the 0.8490 2015-2017 uptrend vrs the downtrend that recently broke below the 0.8430 55 week ma together and the .8401 February low. On a reversal of the French elections bid, the key downside target is the.8356/51 neckline. "The pattern developing on the chart is a large potential head and shoulder top and a weekly close below 0.8351 will confirm. Initial support below here is 0.8306 the December 2016 low, then 0.8252 the July 2016 low," explained analysts at Commerzbank.
A soft landing for the euro on a Le Pen victory?
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.