EURGBP Potential reversal
EUR/GBP rallied hard by just under 180 pips on Thursday, making for one of the biggest session's gains in recent history. The move comes as the U.K. Prime Minister Theresa May’s leadership has been called into question following the Brexit Secretary Dominic Raab cabinet minister Esther McVey resignations less than just 24 hours after she PM May had received the approval of her cabinet for a draft Brexit plan.
Today's price action has exposed the descending weekly resistance line from the 0.9098 summer highs and a break of 0.8950's opens the 0.8980 76.4% fibo line, (April to Aug rally). However, technical indicators are well into overbought territory and signal a pause in momentum for the meantime. A reversion to 0.8830 pivot could play out on profit-taking as markets wait for further developments.
Today's price action has exposed the descending weekly resistance line from the 0.9098 summer highs and a break of 0.8950's opens the 0.8980 76.4% fibo line, (April to Aug rally). However, technical indicators are well into overbought territory and signal a pause in momentum for the meantime. A reversion to 0.8830 pivot could play out on profit-taking as markets wait for further developments.
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