EUR/GBP spikes to fresh session peak after UK Supreme Court verdict
|The EUR/GBP cross ran through some offers and dropped to fresh session low near 0.8570 region after UK Supreme Court verdict on Brexit. The cross, however, quickly recovered from lows and jumped to fresh session peak near 0.8620-25 region.
The UK Supreme Court ruled against the government and votes 8-3 in favor of parliament approval before the government can trigger article 50. Although the decision is unlikely to block Brexit but might complicate and delay the process as the opposition Labour Party might push for some amendments aimed towards 'softer Brexit' and hence, attracted some renewed selling pressure around the British Pound.
Meanwhile, an offered tone around the shared currency, with the EUR/USD major testing session low, has failed to assist the cross to build on to its recovery move and limited further upside, at-least for the time being.
Technical levels to watch
A follow through selling pressure below 0.8555-50 region is likely to accelerate the slide towards 50-day SMA support near 0.8530 region, which if broken has the potential to drag the cross back towards 0.8500 psychological mark.
On the upside, any recovery move above 0.8600 handle might continue to confront resistance near 0.8620-25 region above which a fresh bout of short-covering is likely to lift the cross back towards 0.8670-75 resistance area.
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