EUR/GBP drops to lowest since May 2017 after Brexit votes

The pound accelerated to the upside after the UK Parliament voted to rejected a no-deal Brexit and following numerous rumors and speculations, that include resignations at the cabinet. 

The EUR/GBP pair dropped from 0.8560 to 0.8471, hitting the lowest level in 22 months. The pair tumbled following action at the UK Parliament on the back of a stronger pound that kept rising despite the political chaos. 

The UK Parliament passed legislation to avoid Brexit without a deal and tomorrow will vote on the extension of Article 50. Despite the votes, the outlook continues to be dominated by uncertainty. Still, the UK Parliament appears to be far from agreeing to a Brexit deal and also, if an extension is requested, all EU members states will have to agree. “Speculation that hard Brexiters will look to vote for May's deal has put a bid in GBP. While fluid, we think it may be difficult for GBP to sustain a range break until we have more clarity”, said TDS analysts. 

Near the end of the day, the pound remains strong as EUR/GBP trades slightly below 0.8500, headed toward the lowest close since May 2017. From a technical perspective, a close around current levels could point to further losses. The next strong support is seen around 0.8420/25. 

More levels 

Overview:
    Today Last Price: 0.8494
    Today Daily change: -139 pips
    Today Daily change %: -1.61%
    Today Daily Open: 0.8633
Trends:
    Daily SMA20: 0.865
    Daily SMA50: 0.8757
    Daily SMA100: 0.8827
    Daily SMA200: 0.8854
Levels:
    Previous Daily High: 0.8655
    Previous Daily Low: 0.8475
    Previous Weekly High: 0.8656
    Previous Weekly Low: 0.8536
    Previous Monthly High: 0.8842
    Previous Monthly Low: 0.8529
    Daily Fibonacci 38.2%: 0.8586
    Daily Fibonacci 61.8%: 0.8544
    Daily Pivot Point S1: 0.8521
    Daily Pivot Point S2: 0.8408
    Daily Pivot Point S3: 0.8341
    Daily Pivot Point R1: 0.87
    Daily Pivot Point R2: 0.8767
    Daily Pivot Point R3: 0.888