Home EUR/GBP: Moment Of Reckoning Still Coming; Levels To Watch – MUFG
Forex News Today: Daily Trading News

EUR/GBP: Moment Of Reckoning Still Coming; Levels To Watch – MUFG

Euro/pound topped 0.90 amid the sell-off of the pound. What’s next?

Here is their view, courtesy of eFXdata:

MUFG Research discusses GBP outlook amid the latest Brexit development and advises caution in the near-term.

“The pound sell-off could accelerate further heading into yearend if EUR/GBP breaks  above key resistance at the 0.9100-level  where the highs from August are located.  There is then there little in the way of resistance for EUR/GBP until the highs from August 2017 at around the 0.9300-level.

The clear trigger for the sharp pound sell-off was PM May’s decision to postpone the vote planned for today on her Brexit deal. It was an acknowledgment that her deal was heading for a heavy defeat. In an act of self-preservation, she decided it was better to pull the vote than suffer a landslide defeat which would have increased the likelihood of an immediate leadership challenge. Interestingly, the pound reacted as if PM May had suffered a heavy defeat anyway,” MUFG notes.

The Brexit timeline is now less clear…We are now in highly uncertain stage of Brexit negotiations,” MUFG adds.

For lots  more FX trades from major banks, sign up to eFXplus

By signing up for eFXplus via the link above, you are directly supporting  Forex Crunch.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.