EUR/GBP remains under pressure around 0.8600

EUR/GBP extends the rangebound trading near 0.8600.
Brexit Party’s N.Farage launches the election campaign.
Tories continue to rule out a pact with Brexit Party.

Pablo Piovano FXStreet

The downside momentum in the shared currency has put EUR/GBP under extra downside pressure on Friday, particularly following the auspicious results from US Non-farm Payrolls.

EUR/GBP focused on UK elections

The European cross is prolonging the sideline theme around the key 0.8600 handle for yet another session, always tracking headlines from the UK elections campaign.

On the latter, Brexit Party leader N.Farage favoured a ‘Leave alliance’ with PM B.Johnson at the launch of the elections campaign earlier in the day, all after President Trump suggested that both candidates could team up and become ‘an unstoppable force’.

In the meantime, latest opinion polls noted Tories are comfortably leading the vote intentions, although concerns have emerged within the Conservative Party that voting to N.Farage’s Brexit Party could undermine the possibility of obtaining majority in the next elections.

EUR/GBP key levels

The cross is losing 0.18% at 0.8599 and a drop below 0.8574 (monthly low Oct.17) would expose 0.8488 (monthly low May 6) and then 0.8474 (2019 low Mar.12). On the other hand, the next up barrier emerges at 0.8676 (high Oct.24) followed by 0.8810 (200-day SMA) and finally 0.8906 (50% Fibo of the May-August rally).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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