Today our focus will remain on Europe as we take a look at the EUR/GBP currency pair. After a prolonged bullishness, this week the rates began decreasing.
The British pound is currently mostly affected by the election of Boris Johnson as the next Prime Minister of the United Kingdom. Johnson was a big Leave campaigner back before the 2016 Brexit Referendum. He has criticized Theresa May’s soft approach to the negotiations and has vowed that as Prime Minister he would take the UK out of the European Union by the deadline, regardless of whether a deal is reached.
The European central currency is under pressure today, as investors expect an interest rate decision from the ECB. The European Central Bank already has the interest rate fixed at 0.00%. However, with all of the negative factors on the global financial markets, most notably the trade war between the United States and China, the ECB has announced their intention to support the economy further. Today we should learn what shape and form this support would take.
In terms of the daily chart, today we have a pivot point for the pair located at 0.8933, with the pair currently trading below it. The daily support levels lie at 0.8899 and 0.8872. The daily resistances are at 0.8960 and 0.8994. The indicators of technical analysis are confident in giving us a strong sell recommendation.
