EUR/GBP remains heavily offered below mid-0.8600s

EUR/GBP came under some intense selling pressure on the first day of a new trading week.
The outcome of the Scottish Parliament election contributed to the sterling’s outperformance.
Upbeat Eurozone Sentix Investor Confidence failed to impress bulls or lend any support.

Haresh Menghani FXStreet

The EUR/GBP cross maintained its heavily offered tone through the first half of the European session and refreshed daily lows, around the 0.8630-25 region in the last hour.

The cross witnessed aggressive selling on the first day of a new trading week and dropped back closer to last week's swing lows amid a strong pickup in demand for the British pound. The outcome of the Scottish Parliament election, where SNP fell short of winning the absolute majority, helped ease the UK political risks.

In fact, Nicola Sturgeon’s Scottish National Party (SNP) recorded its fourth consecutive victory and won on 64 seats – one short of an outright majority. This was seen as a key factor behind the sterling's relative outperformance against its European counterpart and exerted fresh downward pressure on the EUR/GBP cross.

This comes on the back of the optimistic outlook for the UK economy amid the gradual easing of restrictions. The UK Prime Minister Boris Johnson is scheduled to make a statement later today on the further reopening of the economy, which should now play a key role in influencing the EUR/GBP cross and provide some trading impetus.

On the other hand, the shared currency was seen consolidating in a range amid a modest US dollar strength and seemed unimpressed by Eurozone Sentix Investor Confidence Index. The gauge jumped to 21.0 in May, beating consensus estimates pointing to a reading of 14 by a big margin, though did little to lend any support to the EUR/GBP cross.

Technical levels to watch

EUR/GBP

Overview
Today last price	0.8634
Today Daily Change	-0.0066
Today Daily Change %	-0.76
Today daily open	0.87

Trends
Daily SMA20	0.8675
Daily SMA50	0.8621
Daily SMA100	0.8742
Daily SMA200	0.889

Levels
Previous Daily High	0.8701
Previous Daily Low	0.8666
Previous Weekly High	0.8711
Previous Weekly Low	0.8624
Previous Monthly High	0.872
Previous Monthly Low	0.8472
Daily Fibonacci 38.2%	0.8687
Daily Fibonacci 61.8%	0.8679
Daily Pivot Point S1	0.8677
Daily Pivot Point S2	0.8654
Daily Pivot Point S3	0.8642
Daily Pivot Point R1	0.8712
Daily Pivot Point R2	0.8724
Daily Pivot Point R3	0.8748

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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