EURGBP Rebounds from Five-Month Lows Ahead of Brexit Critical Vote

EURGBP trading 0.05% higher at 0.8606 just above the five-month lows as investors focus turns to UK Parliament and the effort to pass the revised Withdrawal Agreement (WAB). Borris Johnson’s agreement will also be discussed in the European Parliament today. PM Boris Johnson reiterated that they need to leave the EU with their new Brexit deal on October 31st and he added that the best way to avoid any disruption from a no-deal Brexit is to vote for this deal in Parliament today. DUP is “highly likely” to vote against the second reading and programme motion tonight. The pound is under pressure midday as traders take some profits off the table ahead of the important Brexit vote.

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EURGBP Resistance and Support

EURGBP stops a series of five negative trading session that drove the pair down to five-month lows as the short term momentum is bearish after the pair breached below the critical 200-day moving average. On the downside, first support stands at 0.8586 the daily low and then 0.8489 the low from May 5th. Investors holding short positions might sit comfortably as long as the pair trades below 0.8650. On the upside, first resistance stands at 0.8619 and then at 08749 the high from October 15th which guards the 200-day moving average at 0.8816. Traders looking to buy the pair, an entry point might be when the pair breaks convincingly above the 0.8817 resistance.

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