EUR/GBP rally stalling at 0.85 handle post French election R1 result

Ross J Burland FXStreet

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?

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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