EUR/GBP rebounds following a dip to 0.8730 on Brexit headlines


  • UK PM May says a vote on whether to hold a second referendum will be included in the new Brexit deal.
  • None of the reactions suggests the new deal will pass.
  • Consumer sentiment improves slightly in the euro area in May.

The EUR/GBP came under a sudden pressure in the American trading hours after news outlets reported that British Prime Minister Theresa May's new Brexit deal would include a vote on whether to hold a second referendum. After dipping to a 5-day low of 0.8730, however, the pair recovered its losses and last seen trading at 0.8765, where it down 0.13% on a daily basis.

Although PM May confirmed the reports by announcing the inclusion of the vote on a second referendum in the Withdrawal Agreement Bill, none of her remarks convinced that the new deal had significant enough changes for it to pass through the parliament. In fact, a number of reporters claimed that many MPs who voted in favour of the previous deal were now against the PM's latest deal. 

According to Reuters, the DUP said that it will have to await the publication of the text of the Brexit bill to see what the proposals actually mean but added that the fatal flaws of the draft treaty remained unchanged. Additionally, former Brexit Minister Davis told reporters that he would vote against the deal because it would allow the possibility of adding a second referendum into law.

Meanwhile, the data published by the European Commission showed that the Consumer Confidence Index improved slightly to -6.5 in May's preliminary reading from -7.3 in April to better the market expectation of -7.6 but was largely ignored by the participants.

Technical levels to watch for

EUR/GBP

Overview
Today last price 0.8765
Today Daily Change -0.0011
Today Daily Change % -0.13
Today daily open 0.8776
 
Trends
Daily SMA20 0.8642
Daily SMA50 0.8614
Daily SMA100 0.8689
Daily SMA200 0.8794
Levels
Previous Daily High 0.8786
Previous Daily Low 0.8749
Previous Weekly High 0.878
Previous Weekly Low 0.8622
Previous Monthly High 0.8685
Previous Monthly Low 0.8502
Daily Fibonacci 38.2% 0.8772
Daily Fibonacci 61.8% 0.8763
Daily Pivot Point S1 0.8755
Daily Pivot Point S2 0.8733
Daily Pivot Point S3 0.8717
Daily Pivot Point R1 0.8792
Daily Pivot Point R2 0.8808
Daily Pivot Point R3 0.883

 

 

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