EURGBP slumps to daily lows around 0.88 after the UK Supreme Court rules that the prorogation was ‘unlawful’; the Prime Minister’s advice to Her Majesty was unlawful, void and of no effect. Parliament has not been prorogued. This is the unanimous decision of all Justices.
The pair breached the 200-day moving average on the news. On the technical analysis side, the bears are in control for the short term as the pair trading below all major moving averages. Today the pair made an attempt to regain the 200-day moving average but stopped at 0.8851, an area where the pair has rejected twice. On the downside, first support stands at 0.8804 today’s low, then at 0.8784 Friday’s low, while next barrier is at 0.8723 the low from May 21st. Investors holding short positions can sit comfortably as long as the pair trades below 0.8854. The pair has just come out from oversold conditions as indicated by the daily RSI so a rebound can’t be ruled out. On the upside immediate resistance stands at 0.8854 today’s high, while a break above will open the way for a move up to 0.8955 the 100-day moving average. For those looking to buy the pair, an entry point can be when the pair breaks above the 200-day moving average 0.8835.