EUR/GBP tumbles to daily lows near 0.8540 ahead of key votes

The better tone in the Sterling drags the cross lower.
House of Commons will vote tonight on three amendments.
MPs will now take control of the Brexit process.

Pablo Piovano FXStreet

Increasing buying pressure around the British Pound is forcing EUR/GBP to slip back to the area of daily lows in the 0.8550/40 band.

EUR/GBP focused on upcoming votes

The European cross remains under pressure so far this week amidst rising volatility around the Sterling and upcoming crucial hours in the Brexit negotiations.

In fact, after last night’s vote, MPs will now take control over the Brexit process, undermining further PM May’s competence as a leading voice and at the same time casting doubts over the continuation of Mrs. May at Number 10.

House Speaker J.Bercow selected amendments put forward by J.Corbyn, O.Letwin and M.Beckett to vote tonight at the House of Commons (22GMT). It worth mentioning that a third meaningful vote has been postponed without a date after May’s plan lack of sufficient support.

EUR/GBP key levels

The cross is retreating 0.13% at 0.8557 and faces immediate contention at 0.8471 (2019 low Mar.13) seconded by 0.8402 (monthly low Feb.22 2017) and then 0.8382 (monthly low May 10 2017). On the upside, a breakout of 0.8698 (55-day SMA) would aim for 0.8722 (high Mar.22) and finally 0.8838 (200-day SMA).

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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